Suzlon Energy shares surged 5% today, hitting ₹53, a level not seen since April 2011. This marks a significant rise for the renewable energy giant, which has been steadily gaining momentum on Dalal Street.
Performance Highlights
2020: Shares rebounded with a 246% gain after a prolonged downturn from 2008 to 2019.
2021: Gained 60%.
2022: Increased by 13%.
2023: Soared by 260%.
2024: Up by 42% year-to-date.
Key Factors Driving the Rally
- Steady Order Wins: Suzlon’s continuous stream of orders has boosted investor confidence.
- Debt Reduction: The company’s focus on reducing debt has strengthened its financial position.
- Efficient Capital Management: Improved working capital management has contributed to its robust performance.
Company Profile
Suzlon Group, headquartered in Pune, India, is a leading renewable energy solutions provider with 20.7 GW of wind energy capacity installed across 17 countries. The group includes Suzlon Energy Limited and its subsidiaries, holding the largest wind energy portfolio in India with 14.7 GW of assets and an additional 6 GW installed globally. Suzlon’s product portfolio is led by the 2 MW and 3 MW series of wind turbines.
Positive Outlook from Analysts
- Nuvama Institutional Equities: Set a target price of ₹53, noting Suzlon’s financial turnaround and strong order book growth.
- Morgan Stanley: Target price of ₹58.5, projecting a 57% CAGR in earnings from FY24 to FY27.
- ICICI Securities: Target price of ₹60, highlighting debt reduction and improved corporate governance.
- Anand Rathi: Target price of ₹58, emphasizing Suzlon’s market position and net cash achievement.
Future Prospects
India’s power demand is rising rapidly, with renewable energy dominating new capacity additions. The government aims to reach 500 GW of non-fossil fuel capacity by 2030, with plans to tender 50 GW of renewable energy bids annually until FY 2027–28. Suzlon is well-positioned to benefit from these ambitious targets, ensuring sustained growth in the renewable energy sector.
