Increased execution and order inflows are long-term positives for the stock. What do the results mean? Execution stronger than expected: Overall 1HFY17 execution came in at 557 MW, up ~29% y-y. Management highlighted that 1H of a typical financial year accounts for 30-35% of annual sales and expects a strong pick-up in execution in 2HFY17. Order inflows improved to 283 MW from 166 MW at 1QFY17 but due to increased execution order backlog fell to 1,136 MW from 1,243 MW at end-1QFY17. Net debt up by R4.0 billion q/q: Non-working capital net debt fell from R69.6 billion to R66.5 billion in 2QFY17 but was more than offset by a sharp rise in working capital debt to R31.9 billion from Rs 24.8 billion at end-1QFY17. Valuation We value Suzlon using a DCF methodology (Ke at 13.5%, g at 5%) to arrive at a TP of R24.