Shares of Suzlon Energy Ltd surged 5% on Friday, marking the third consecutive session of hitting the upper circuit. This strong momentum comes despite the company stating twice that it was unaware of any specific events or news in mainstream media that could have triggered such a sharp movement in stock price. On Friday, Suzlon’s stock touched its upper circuit limit at Rs 58.15. Analysts attribute this rise to the company’s impressive Q3 results and a promising growth outlook in the renewable energy sector.
- Strong Q3 Performance: Suzlon Energy’s revenue and profits surpassed market expectations, driven by the successful execution of 457MW wind turbine projects a 163% year-on-year (YoY) increase.
- Expanding Order Book: The company’s order backlog grew to 5.5GW as of January-end, indicating robust demand for its renewable energy solutions.
- Future Growth Prospects: With its Pondicherry plant becoming operational, Suzlon’s total production capacity will reach 4.5GW in the next 18 months, boosting its execution capabilities.
Analysts’ Views and Target Prices
ICICI Securities highlighted Suzlon’s strong market traction, stating that the company is focusing on selective order booking while prioritizing execution. With the newly added 1.5GW capacity at the Pondicherry plant, Suzlon is expected to accelerate execution over the next year and a half. ICICI Securities has maintained a ‘Buy’ rating on the stock, though it revised its target price to Rs 68 from the earlier Rs 80.
Meanwhile, JM Financial also recommended a ‘Buy’ on Suzlon Energy, setting a target price of Rs 80. The firm emphasized Suzlon’s improved manufacturing capacity, enhanced operational efficiency, and better supply chain management under new leadership. It also noted that large orders from major players like NTPC Ltd, Torrent Power Ltd, and Jindal Renewables Ltd have secured land, improving execution visibility.
Similarly, Nuvama Institutional Equities upgraded Suzlon from ‘Hold’ to ‘Buy,’ citing valuation comfort after a recent stock price correction. It set a target price of Rs 60, reinforcing the company’s strong fundamentals and potential for growth.
The Road Ahead
As India continues to ramp up its renewable energy capacity, Suzlon Energy is poised to benefit from the sector’s expansion. Analysts believe that the company’s growing order book, increased production capacity, and improved financial position will drive its performance in the near to medium term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research and consult a professional financial advisor before making investment decisions.
