Shares of Suzlon Energy Ltd hit an upper circuit during the trading session on Thursday. The multibagger counter once again raced past the Rs 50-mark during the session in the early trade and managed to stay about this level even as the stock gave up its gains partially.
Shares of Suzlon Energy were locked in the upper circuit limit of 5 per cent at Rs 51.34 on Thursday, commanding a total market capitalization of close to Rs 70,000 crore. However, it gave up its gains partially in the early session. The scrip had settled at Rs 48.90 in the previous trading session on Wednesday.
Suzlon Energy shares are nearing its 52-week high at Rs 52.19 hit on 4 June 2024. The stock has zoomed more than 285 per cent from its 52-week low at Rs 13.28 hit a year ago. The stock is up nearly 35 per cent in 2024 so far, while it is up 18 per cent in the last one month.
Suzlon Energy is among three dozen stocks where mutual funds bought more than 1 crore equity shares in May. Interestingly the stock has delivered double digit returns to the investors. Mutual Funds held stake in the company worth Rs 2,172 crore in the company as of May 2024.
The momentum in Suzlon Energy is supported by the government policy which has boosted the charm of renewable energy companies among the hot investment themes on Dalal Street, thanks to central government's thrust to boost green energy.
The government's target to achieve 500 GW of renewable energy generation by 2030 has made the market positive about this industry. According to some reports, India's renewable energy sector is set to attract over Rs 20.8 lakh crore in investments. Suzlon Energy has grabbed eyeballs off late.
Last week, Suzlon Energy announced to appoint a appoint Khaitan & Co, an eminent law firm in India, to to evaluate the corporate governance practices of the company after the resignation of Marc Desaedeleer, one of its independent directors earlier this month.
Earlier this week, the company announced its Vice Chairman Girish Tanti has been elected as the Chair of Global Wind Energy Council India. In April, he was elected Vice-Chair of GWEC, the industry body said in a statement.
Domestic brokerage firms are mostly positive on the stock. ICICI Securities has a buy rating on the stock with a target price of Rs 60, while JM Financial and Nuvama Institutional Equities also have 'buy' recommendation on the stock with target prices of Rs 54 and Rs 53, respectively.