Suzlon Energy Share Price Update: Over the past year, the stock has skyrocketed by 285% from its 52-week low and is now trading at a peak not seen in over 14 years.
Suzlon Energy Shares Surge in Bull Run, Rising for Seven Consecutive Sessions
Suzlon Energy shares have experienced a strong bull run, climbing for seven straight sessions. During this period, while the Sensex and Nifty indices gained only twice, Suzlon’s stock has surged 25%. This latest rally has pushed the renewable energy stock into the overbought zone, with its relative strength index (RSI) reaching 82.7, indicating it is strongly overbought. The stock is currently trading above its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages, reflecting greater buying interest than selling pressure in both the short and long term.
In the current session, Suzlon Energy shares hit an upper circuit limit of 5%, reaching Rs 68.25. Over the past year, the stock has skyrocketed by 285% from its 52-week low and is now trading at a level not seen in over 14 years. The stock had hit its 52-week low of Rs 17.73 on August 3, 2023.
The company’s market capitalization has increased to Rs 92,989 crore. Over the past two years, Suzlon’s stock has surged 1035%, and over three years, it has risen by 1085%. The stock opened at Rs 66 today compared to the previous close of Rs 65 on BSE, and it has soared 1569% over the past five years.
A total of 213.22 lakh shares of Suzlon Energy were traded, generating a turnover of Rs 144.63 crore on BSE.
The stock has a beta of 0.8, indicating lower volatility over the past year.
Brokerage Anand Rathi Shares & Stock Brokers has set a price target of Rs 69 for Suzlon Energy. Although it has downgraded the stock’s rating, it has raised the target price due to significant growth in wind-turbine deliveries. Anand Rathi has adjusted its rating to ‘hold’ with the new target price, up from Rs 60 previously, citing impressive growth opportunities. Key risks include adverse government policies, slower wind-turbine generator (WTG) adoption, and intense competition.
JM Financial has increased its price target for Suzlon to Rs 71 from Rs 54 and maintains a buy rating. The firm highlights gradual momentum building, a healthy order book, and a strengthened balance sheet as key drivers for future growth.
Geojit has set a price target of Rs 73 for Suzlon Energy, anticipating that its revenue CAGR and return on equity (ROE) will surpass industry peers from FY24-26E. Geojit expects strong order inflows supported by government tenders and commercial and industrial customers. The brokerage forecasts a revenue CAGR of 53% and EPS growth of 66% CAGR, leading to improved ROE, and has assigned a ‘buy’ rating to the stock.
The company’s strong market position is expected to facilitate order acquisition over the long term. According to CRISIL Ratings, the company has successfully mitigated its reliance on customer-backed financing, a factor that had previously limited growth. CRISIL maintains a Positive outlook, anticipating that a robust order book and high delivery volumes will enhance the profitability of its wind turbine generator (WTG) business.
Shares of Shakti Pumps (India) have been locked in the upper circuit for the third consecutive day, rising 5% to Rs 4,514.80, following a significant increase in profit after tax, which reached Rs 92.6 crore in Q1FY25, up from Rs 1.0 crore in Q1FY24.
The company’s EBITDA surged to Rs 135.9 crore compared to Rs 7.9 crore in the same quarter last year. The EBITDA margin improved to 23.9% in Q1FY25, up from 7.0% in Q1FY24, driven by economies of scale and increased execution rates. Revenue also saw a substantial year-on-year increase of 402%, reaching Rs 567.6 crore from Rs 113.1 crore in the previous year’s quarter.
Management reports that the company currently holds a healthy order book of approximately Rs 2,000 crore as of June 30, 2024, which is expected to be executed over the next 15 months. Additionally, recognition by various state governments and electricity boards of the benefits of solar pumps for farmers is anticipated to lead to more orders from state governments, further enhancing the company’s growth prospects.
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