India’s largest renewable energy solutions provider announced that it won a repeat order for the development of a 47.6 MW wind power project from the KP Group in Gujarat. However, it did not disclose the value of the order.
This project is located at Vagra in the Bharuch District of Gujarat and is expected to be commissioned in 2024. It can provide electricity to 36,000 households and curb 1.42 lakh tonnes of carbon dioxide emissions per year.
The shares of Suzlon Energy zoomed 5 percent to reach an intraday high of ₹ 18.20 apiece. At 12:17 PM on Tuesday, its shares were trading at ₹ 18.00, up 3.75 percent.
Suzlon will supply its S133 wind turbines (equipment supply) and supervise the execution and commissioning of the project. Moreover, it will provide comprehensive operations and maintenance services post-commissioning.
JP Chalasani, Chief Executive Office, Suzlon Group said that the power generated from this project will serve the Commercial & Industrial (C&I) consumer segment, which is a key segment to drive deeper penetration of renewables in India.
In another development, the company’s board approved the issuance of equity shares, convertible bonds and/or any other instruments through one or more private offerings or qualified institutions placement, or a combination, for an aggregate amount not exceeding ₹ 2,000 crores. This issuance is subject to shareholder approval.
In the past year, the company’s shares delivered multibagger returns of 196 percent, as its share price increased from ₹ 6.15 to 18.20. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.96 lakhs today!
With a market capitalization of ₹ 18,797 crores, Suzlon Energy is a mid-cap company. Its shares were trading at a price-to-earnings ratio (P/E) of 6.57, which is significantly higher than the industry P/E of 28.30, indicating that the stock might be undervalued as compared to its peers. Retail investors hold a 73.35 percent stake in it, followed by promoters with a 14.50 percent stake, foreign institutions with 6.60 percent, domestic institutions with 5.47 percent and mutual funds with 0.08 percent
Domestic brokerage ICICI Securities has a ‘buy’ rating on the stock with a target price of ₹ 22.00. This translates to an upside of 22.22 percent as compared to its share price of ₹ 18.00.
Suzlon Energy manufactures wind turbine generators (WTGs) and related components of various capacities. Its services include operations and maintenance services, leadership,
optimization and digitalization, value-added services and products and multibrand operation and maintenance services.
Written by Simran Bafna
