The share of the market leader in wind turbine manufacturers gained up to 5 percent after the company announced the acquisition of a 76% stake in Renom Energy Services worth Rs 660 crore.
With a market capitalization of Rs 93,559.50 crore, the shares of Suzlon Energy Ltd were trading at Rs 68.52 per share, increasing around 3.31 percent as compared to the previous closing price of Rs 68.45 apiece.
Reason for rise:-
Today, the company shares have seen bullish movement after Suzlon Energy Ltd announced the acquisition of 22,80,000 equity shares representing a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group in two or more tranches.
Furthermore, in the first tranche, the company will acquire a 51% stake for Rs 400 crore, and in the second tranche, it will acquire an additional 25% stake worth Rs 260 crore, this acquisition will conclude within 18 months.
Moreover, this strategic acquisition will give Suzlon a comprehensive presence and penetration into the non-Suzlon segments of the Indian Wind Energy Services industry.
Brokerage Recommendation:-
Morgan Stanley, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 73.4, indicating a potential upside of 7 percent from Wednesday’s price of Rs 68.52 per share.
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Financial Condition:-
Looking forward to the company’s financial performance, revenue magnified by 50 percent from Rs 1,351 crore in Q1FY24 to Rs 2,022 crore in Q1FY25, but during the same period, net profit magnified multifold times by 200 percent from Rs 101 crore to Rs 302 crore.
Market leader:-
Suzlon Energy Ltd has a market leader position with a 32 percent market share in the financial In 2024, the company has 20.8 GW global installed wind energy capacity.
Order book & client base:-
The company has the highest-ever domestic order book of 3.8 GW, the company has a 14.8 GW installed base with more than 9,800 turbines.
The company has a large client base which includes, ONGC, Bajaj, Reliance Industry, Tata Group, Torrent Power, Shree Cement, and many more.
Company profile:-
Suzlon Energy Limited is an Indian renewable energy solutions supplier. The company manufactures wind turbine generators and related components in various capacities. It operates in 17 countries including Asia, Australia, Europe, Africa, and the Americas.
Written by:- Abhishek Singh
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