Shares of Suzlon Energy Ltd climbed 5 per cent in Friday's trade, the third in a row, even as the renewables energy solutions provider informed stock exchanges, twice, it could not ascertain any event or information in the mainstream media, which could have triggered this material price movement.
On Friday, the stock hit its 5 per cent upper circuit limit at Rs 58.15. In a note on January 29, ICICI Securities said Suzlon Energy's reported Q3 revenues and profit beat the consensus, led by execution of 457MW of wind turbines (up 163 per cent YoY). It noted that Suzlon Energy's order book swelled to 5.5GW at end-January and that outlook for the near to medium-term remains strong.
"Suzlon Energy has seen strong traction in terms of order enquiry and shall be selective in booking new orders, focussing more on the execution front. With its Pondicherry plant becoming operational, another 1.5GW capacity shall be added, taking the total of 4.5GW; thus, ramping up execution in the next 18 months. Given the strong outlook on OI and execution growth in the medium term, we retain BUY with a revised target of Rs 68 (earlier Rs 80)," ICICI Securities said.
Buy Suzlon Energy shares, JM Financial said while suggesting a target price of Rs 80 on the stock. Also Nuvama had suggested a price target of Rs 60 on the renewable energy solutions provider.
"With a strong order book, augmented manufacturing capacity, enhanced operational readiness - bolstered by new leadership at business groups and supply chain improvements and sufficient working capital, we believe that the company is well-positioned for considerable performance growth in the future," JM Financial said.
The brokerge said the pace of capacity addition at country level will continue to be a critical metric for monitoring moving forward. It said several large orders from NTPC Ltd, Torrent Power Ltd and Jindal Renewables Ltd have secured land, thereby providing improved visibility for execution.
Earlier, Nuvama Institutional Equities also suggested a Buy' on Suzlon Energy, as it upgraded the stock from 'Hold' on valuation comfort, following the recent stock correction.