Shares of Suzlon Energy scaled new highs during the trading session on Monday but the stock crashed more than 5 per cent from day's high as the selling pressure in the broader markets intensified. However, the stock was seen trading with sharp cuts in the later half of the session.
Shares of Suzlon Energy Ltd scaled 52-week high at Rs 71.75 apiece, commanding a total market capitalization close to Rs 97,800 crore, but the stock cracked 5.15 per cent from day's high to Rs 68.05. However, the scrip had settled at Rs 71.44 in the previous trading session on Friday.
Suzlon Energy shares have delivered multibagger returns to the investors as the stock has zoomed about 800 per cent in the last 15 months, while it has surged nearly 300 per cent from its 52-week low at Rs 18 apiece. The stock has gained nearly 85 per cent in the year 2024 so far, while the stock is up more than 25 per cent in the last one month.
Commenting on Suzlon Energy in an interaction with Business Today TV, Avani Bhatt, Sr. Vice President, Equity Derivatives Research at JM Financial said that Suzlon Energy will be able to hold strength and the stock can be bought at around levels of Rs 65 with a target of Rs 77-80 per share for short term trading and higher levels from the investment point of view.
Suzlon Energy Ltd reported a more than triple net profit at Rs 302 crore in the quarter ended on June 30, 2024. The wind energy solutions provider reported revenue from operations in the reported quarter at Rs 2,016 crore for the first quarter of the current financial year, registering an uptick of 50 per cent on a yearly basis.
Ebitda for the reported quarter rose nearly 86 per cent to Rs 370 crore in Q1FY25, from Rs 199 crore in Q1FY24. Ebitda margins grew sharply to 18.4 per cent from 14.8 per cent. Suzlon Energy's balance sheet remains strong with a net cash position of around Rs 120 crore.
"We forecast the consolidated revenues of Suzlon to grow at 53 per cent CAGR in FY24-26E period. Wind Turbine Generator (WTG) segment revenues are expected to exhibit a 72 per cent CAGR driven by higher delivery volumes. Foundry and forging capacity utilizations will hence improve in FY26E in order to meet this demand," said Geojit Financial Services.
"Despite factoring in execution risks, the EPS is expected to grow at a 66 per cent CAGR, resulting in a ROE improvement from 18.2 per cent in FY24A to 26.8 per cent in FY26E. We value the stock at 50 times PE on FY 26 EPS of Rs 1.4 to arrive at a target price of Rs 73," it said.
Among other brokerage firms, JM Financial has a 'buy' rating with a target price of Rs 71 on the stock, while Anand Rathi Shares & Stock Brokers and Nuvama Institutional Equities have suggested to 'hold' the Suzlon Energy with target prices of Rs 69 and Rs 64, respectively.