Shares of Suzlon Energy Ltd hit upper circuit for the second straight session on Thursday after the firm reported better-than-expected Q3 earnings. The rally on the Suzlon Energy counter comes after two global brokerages were bullish on the stock. Morgan Stanley reiterated its 'overweight' stance on the multibagger stock with a price target of Rs 71 per share. The brokerage said the company sees wind industry constraints around land acquisition to improve from FY26.
Suzlon's fresh capex of Rs 350-400 crore for new blade manufacturing lines in MP and Rajasthan also made the brokerage positive on stock. Morgan Stanley said large order book (5.5GW) of Suzlon Energy is expected to be executed in Q4FY25 and FY26.
Shares of Suzlon Energy Ltd hit upper circuit of 5% in early trade today. The multibagger stock rose 5% to Rs 55.39 in the current session against the close of Rs 52.76 on Wednesday. Market cap of the firm climbed to Rs 75,593 crore.
Suzlon Energy stock has climbed 26% in a year and gained 518% in two years. The energy stock clocked a turnover of Rs 1.20 crore as 2.17 lakh shares changed hands on BSE in today’s session.
Another brokerage Nuvama Institutional Equities assigned a Buy rating to the stock post Q3 earnings. It upgraded the stock from 'Hold' on valuation comfort, following the recent stock correction.
The brokerage referred to the company's Q3 execution of 447MW as robust, considering it was expecting Suzlon Energy's execution at 360MW. Operating margin rose to 16.8 per cent in Q3 against Nuvama's estimate of 14.9 per cent, due to higher wind turbine generator (WTG) mix-led operating leverage, resulting in 11 per cent beat to consensus forecast.
"We remain long-term positive on SUEL as we tweak FY25–27 estimates to factor in improved execution in FY25E (1.5GW versus 1.44GW), Renom acquisition and others charges, yielding a revised target of Rs 60 at 35 times FY27E (WTG + F&F EPS) plus DCF of O&M. Upgrade Suzlon to ‘BUY’ (from ‘HOLD’) on valuation comfort and price correction," Nuvama said.
Suzlon Energy reported a 91 per cent year-on-year (YoY) rise in its consolidated net profit for the December 2024 quarter (Q3 FY25). Profit came at Rs 388 crore in the last quarter against Rs 203 crore in the year-ago period.Revenue from operations climbed 91 per cent to Rs 2,969 crore in Q3 FY25 against Rs 1,553 crore in the corresponding period last year. Suzlon said it achieved record quarterly deliveries of 447 MW. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) came at Rs 500 crore for Q3 FY25.