Shares of Suzlon Energy Ltd hit their 12-year high in early trade today after Interim Budget 2024 outlined the government's plan to provide viability gap funding for the development of one gigawatt of offshore wind energy capacity. Suzlon Energy shares gained 4.34% to Rs 50.41, a 12.5-year high on BSE today. Suzlon Energy stock last hit the Rs 50 level intraday on August 5, 2011 when it rose to Rs 50.25 on BSE.
The stock extended gains from the Budget day when it hit upper circuit of 5% at 48.31 on BSE. It closed at the same level in the previous session.
In the current session, Suzlon Energy stock opened higher at Rs 49.90. Market cap of the firm rose to Rs 68,066 crore.
Total 132.59 lakh shares of Suzlon Energy changed hands amounting to a high turnover of Rs 65.99 crore on BSE. Suzlon Energy’s market cap climbed to Rs 68,216 crore on BSE.
Suzlon Energy shares have a beta of 0.6, indicating low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 73.2, signaling it's trading in the overbought zone.
Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Suzlon Energy shares fell to a 52-week low of Rs 6.96 on March 28, 2023.
Sumeet Bagadia, Executive Director at Choice Broking is bullish on the green energy stock. He expects the stock to hit Rs 60 in the short term. "Suzlon share price is looking positive on the chart pattern. Those who have Suzlon shares in their stock portfolio are advised to hold the energy scrip maintaining stop loss at Rs 45 apiece levels. Suzlon share price has a potential to go up to Rs 55 and Rs 60 per share in the short term."
JM Financial has maintained a target of Rs 54 on the stock.
The brokerage has maintained estimates for FY25E and FY26E in spite of better than expected order book, improvement in financial health, favorable policy environment and very healthy bidding pipeline, it added while maintaining 'buy' rating on the stock with a target price of Rs 54.
Suzlon Energy reported a rise in revenue led by dispatches of 170 MW of wind turbine generator (WTG) and stable O&M revenue. EBITDA for the quarter came in at Rs 250 crore, reflecting a 15.9 per cent EBITDA margin. Adjusted PAT came in at Rs 200 crore primarily driven by low amortization of the moulds for S120 2.1 MW WTGs, said JM Financial
"We expect Suzlon to deliver revenue, EBITDA and PAT CAGR of 42 per cent, 43 per cent and 176 per cent, respectively over FY23-26E," said the brokerage.
To expedite wind energy additions, various policy initiatives have been taken viz. state-specific sub-bids for wind, pooling of tariff for uniform RE tariff, RPO trajectory, waiver of ISTS charges for 25 years for RE projects, it said.
Abhijeet from Tips2trades said, “Suzlon Energy is bullish & overbought on the Daily charts & a daily close above resistance of Rs 50.5 could lead to target of Rs 56 in the near term. Support will be at Rs 46."
Suzlon Energy clocked a 160 per cent rise in its Q3 profit at Rs 203.2 crore against Rs 69.8 crore in the year ago period. The manufacturer of wind turbines reported a 7 per cent YoY rise in revenue at Rs 1,560.5 crore.
On a standalone basis, the company reported a net loss of Rs 5.36 crore in Q2 FY24 as against a profit of Rs 4.40 crore in the same period a year ago.
Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.
Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as an investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Adani Ports shares surge 6% to hit one-year high on strong Q3 results; see brokerage view