Green Energy stock which is India’s leading wind energy service company engaged in providing full-stack solutions related to it, finally crossed the 1 Lakh Crore market capitalization mark today followed by multiple head&tailwinds Here’s how
Today’s Price Action
With a market capitalization of Rs. 1,03,976 Crores, the shares of Suzlon Energy Limited were trading at Rs. 76.10 per equity share, up 4.46 percent from its previous day’s close price of Rs. 72.95.
Long Term Multibagger
On March 27, 2020, the shares of Suzlon Energy Limited closed at Rs. 1.70 per equity share exhibiting a gain of around 4,376 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 4 years ago, it would have turned to ~Rs. 44.76 Lakhs.
Sulzon 1 Lakh Crore Market Capitalization
The shares of Suzlon Energy Limited India’s leading wind energy service company with a market share of 32 percent finally crossed the 1 Lakh Crore market capitalization mark in the Indian stock exchanges by hitting a 5 percent upper circuit in the day’s trade and closing at Rs. 76.59.
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Downfall
Suzlon Energy Limited made its stock market debut in 2005 at an IPO Price of Rs. 500 per equity share, but later followed by multiple headwinds and tailwinds the share price declined to up to Rs. 1.70 per equity share in 2020.
The downfall of the company was led by Aggressive Expansion and Debt, financial mismanagement, Leadership and management issues, Policy and Regulatory Changes, Market Challenges of 2008, and other external factors.
Uprise
Later in 2020, the management of Suzlon Energy Limited started making its move to give the biggest comeback story in the Indian stock exchange, thereby taking its investors from rags to riches and taking the company to new heights.
First, there was a restructuring of the management, followed by Debt Restructuring with its lenders renegotiating terms, extending repayment schedules, and reducing its interest burden and to reduce its debt burden, Suzlon sold off non-core assets and stakes in subsidiaries.
It increased its operational efficiency by focusing on its Indian operations, and undertook various cost-cutting measures, including optimizing its supply chain, improving operational efficiency, and reducing overheads.
It engaged in various product innovations and technology upgrades by investing a lot in R&D to cope with the ongoing trends and requirements as India was increasing its focus on green initiatives to reduce carbon in the country.
Followed by Government Support and Policy Environment, financial support and equity Infusion, multiple expansions, new work orders, an increase in client base, and many other factors led to the uplift of Suzlon Energy Limited thereby making it the leading player in the wind energy sector.
About the Company
Suzlon Energy Limited is one of the leading renewable energy solutions providers in the world engaged in the generation of renewable energy and providing full-stack solutions related to it like designing, manufacturing, project execution, operation, and maintenance of wind turbine generators and sale of related components.
Suzlon is India’s No. 1 wind energy service company with a 32 percent cumulative market share in India, along with ~20.8 GW of wind energy capacity installed across 17 countries, and has the largest service portfolio of over 14.8 GW in wind energy assets, 9,800+ turbines and 1,900+ Customers
Suzlon’s world‐class manufacturing facilities are spread across multiple locations in India. The Group has ~6 GW of installed capacity outside India. Suzlon offers a comprehensive product portfolio led by the 2 MW and 3 MW series of wind turbines and it has built its Largest‐ever order book of 3.8 GW
Clientele
It has a strong Clientele base with known players like Reliance Industries, TATA, Adani, ITC, Vedanta, ONGC, Thermax, Torrent Power, ACC, Bajaj, Aditya Birla Group, and many others
Financials and Ratios
Its Revenue from operations grew by 49.64 percent from Rs. 1,351 Crores in Q1FY24 to Rs. 2,022 Crores in Q1FY25, accompanied by profits of Rs. 101 Crores to Rs. 302 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 28.4 percent, and a Return on capital employed (ROCE) of 24.7 percent. It has reported a debt-to-equity ratio of 0.04.
Written by: Bharath K.S
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