Shares of Suzlon Energy witnessed a notable surge of 9.8 percent on Monday’s early trades. Extending its gaining streak to six sessions, its share price reached a fresh 52-week high of ₹ 16.80 apiece and was locked at that price at 12:08 PM.
According to reports, multiple block deals took place on the counter, where 1.4 percent equity or 12.5 crore shares worth ₹ 209 crore changed hands. The buyers and sellers could not be ascertained immediately.
ICICI Securities has a buy rating on the stock with a target price of ₹ 22.00 apiece. This represents an upside of 30.95 percent as compared to its share price of ₹ 16.80. The brokerage said that Suzlon is a market leader by wide margins. Moreover, there is a sharp improvement in the industry outlook and it expects market growth at 35 percent CAGR.
Suzlon Energy manufactures wind turbine generators and related components. Its services segment includes operation and maintenance services, optimization and digitalization, and value-added services. The company has a presence in 17 countries across 6 continents.
In the past year, its share price increased by 175 percent from ₹ 6.11 apiece to ₹ 16.80, delivering multibagger returns. Therefore an investment of ₹ 1 lakh in the company’s shares a year ago would be worth ₹ 2.75 lakhs today!
Suzlon Energy is a small cap stock with a market capitalization of ₹ 16,732 crores. Its shares were trading at a price-to-earnings ratio (P/E) of 5.79, which is significantly lower than the industry P/E of 27.90, indicating that the stock might be undervalued as compared to its peers.
Retail investors hold a 73.35 percent stake in the company, followed by its promoters with 14.50 percent, foreign institutions with 6.60 percent, domestic institutions with 5.47 percent and mutual funds with 0.08 percent.
Written By Simran Bafna
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