The shares of a power company gained nearly 5 percent and hit the upper circuit on Monday’s early trades after the company won a significant order. Its shares were locked at ₹ 23.50 apiece, their new 52-week high, on the National Stock Exchange (NSE).
Suzlon Energy is one of the largest renewable energy solutions providers in India and it manufactures wind turbine generators and related components. I
The Pune-based company recently won a 201.6 MW order from O2 Power Private Limited (Teq Green Power XI Private Limited). This order is significant and involves the installation of 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each. The project is expected to be commissioned in 2025.
“This order demonstrates the trust that customers have in Suzlon’s expertise as well as our 3 MW series of products. We believe that our 3 MW series will be a true game changer for the sector to accelerate and scale up wind energy installations in the country in line with our national targets of 500 GW non‐fossil fuel installations by 2030,” said JP Chalasani, Chief Executive Officer, Suzlon Group.
Brokerage house JM Financial expects a strong pick-up in the company’s performance, amid industry tailwinds, a deleveraged balance sheet and a robust order. The brokerage has a buy rating on the stock with a target price of ₹ 30.00 per share which is likely achievable in September 2024. This represents an upside of nearly 28 percent as compared to the company’s share price of ₹ 23.50.
In the past six months, Suzlon Energy’s share price has increased by 186.59 percent, from ₹ 8.20 apiece to ₹ 23.50, delivering multibagger returns. Therefore an investment of ₹ 1 lakh in the company’s shares six months ago, is worth ₹ 2.86 lakhs today!
With a market capitalization of ₹ 30,422 crores, Suzlon Energy is a mid-cap company. Its shares were trading at a price-to-earnings ratio (P/E) of 50.33, which is higher than the industry P/E of 26.31, indicating that the stock might be overvalued as compared to its peers.
As per the latest shareholding pattern, retail investors hold a 72.80 percent stake in it, followed by promoters with 14.50 percent, foreign institutions with 6.81 percent, domestic institutions with 5.15 percent and mutual funds with 0.74 percent.
Written by Simran Bafna
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