After receiving an upgrade from Morgan Stanley, Suzlon Energy’s shares jumped 5% to reach the upper circuit at Rs 62.37 on Tuesday. The international brokerage changed the stock’s rating from “Equal-weight” to “Overweight,” indicating a chance to purchase following the recent downturn. Previously set at Rs 78, the goal price was lowered to Rs 71.
Suzlon’s strong business moat and its role as a major participant in India’s energy transformation were emphasized by Morgan Stanley. Over the next two years, it is anticipated that the company’s robust order backlog of 5.1 GW, valued at Rs 20,000 crore, will be completed. With the help of a sizable pipeline of 32 GW of wind energy orders anticipated between FY25 and FY30, the brokerage predicts that Suzlon’s market share in the wind energy segment will increase to 35–40% by FY27.
Suzlon’s outstanding Q2 FY25 performance added to the upbeat mood. In Q2 of FY24, the company’s consolidated net profit was Rs 102 crore; this is a significant 96% increase. EBITDA increased 31% to Rs 294 crore, while revenue from operations increased 48% YoY to Rs 2,093 crore. However, compared to a year ago, the EBITDA margin decreased to 14.1% from 15.9%.
Suzlon’s stock has increased 62% so far this year and has produced multi-bagger returns of 670 per cent in the previous two years. The market value of the company is currently Rs 85,111 crore.
Suzlon’s selective order strategy and lower level of competition in the wind energy industry are credited by analysts with the company’s impressive achievement. The business is still in a strong position to grow given India’s quickening energy shift.
The shares of Suzlon were up 4.9% at Rs 62.30 on the BSE at 10:23 AM. The latest events show that investors are still confident in the stock’s long-term prospects.
