Energy stock jumps 7% after company secures order to develop wind power project from Torrent Power 

Shares of Suzlon Energy soared 8 percent on Wednesday after the renewable energy solutions provider announced that it has bagged its largest order for the new Suzlon 3 MW series from Torrent Power. 

In a press release, Suzlon said that it won a major order for its 3 MW series of wind turbines, to develop a 300 MW wind power project from Torrent Power. The project is located in Karnataka and is expected to be completed in phases by 2025. Suzlon will install 100 wind turbine generators with a Hybrid Lattice Tubular Tower and a rated capacity of 3 MW each. This is the fourth order that it has received from Torrent Power. 

The company bagged six orders in the past month, leading to a 24% rally in its share price. This includes the latest order from torrent power, a 204 MW order from Serentica Renewables on May 22, a 25.2 MW order from Sri Kumaraswamy Mineral ExportsPvt. Ltd. on May 19, a 69+ MW order from Nordic Energy Company, a 99 MW order from Vibrant Energy on May 17, and a 69.3 MW order from Juniper Green Energy on May 02. Cumulatively, it has received orders for more than 766.50 MW this month. 

Suzlon’s shares settled at ₹ 10.10, up 6.88% on Wednesday’s closing bell. It has a market capitalization of ₹ 10,839 crores and is a small-cap company. Its shares were trading at a price-to-earnings ratio (P/E) of 4.34, which is significantly lower than the industry P/E of 28.72, indicating that it might be undervalued as compared to its peers. 

The Suzlon Group is one of the leading renewable energy solutions providers in the world with a presence in 17 countries. Headquartered in Pune, India, it comprises Suzlon Energy and its subsidiaries. It is a vertically integrated organization with over twenty-eight years of operational track record. 

Written By Simran Bafna 

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