BackSuzlon Energy share price hits 52-week high. Rises 50% in one month
Suzlon Energy share price has surged from ₹8.20 to ₹16.80 in the last one and a half months, delivering over 100% returns
PremiumSuzlon Energy share price has been in uptrend since mid-May 2023. After bottoming out at ₹8.20 apiece levels in mid of May 2023, Suzlon share price has surge to the tune of ₹16.80 apiece levels, delivering almost multibagger return to its shareholders in these one and half months. However, it seems that there is kore steam left in this energy stock. Suzlon share price today opened upside and went on to hit a fresh 52-week high of ₹16.80 apiece levels on NSE, logging 10 per cent intraday rise against its Friday close price of ₹15.30 per share levels. While climbing to this new 52-week peak, Suzlon Energy shares locked-in 10 per cent upper circuit as well.
Suzlon Energy share price has been in uptrend for the last one and half months and the energy stock has risen from around ₹8.20 to ₹16.80 apiece levels, delivering more than 100 per cent return in this time. In last one month, this share has risen from around ₹11 to ₹16.80 apiexe levels, logging near 50 per cent rise in this period. However, ICICI Securities seems more upside in Suzlon Energy shares.
Giving 'buy' tag to Suzlon Energy shares, the brokerage said, "The Indian power grid needs more wind in its mix. The need to enhance wind capacity addition (post subdued activity in the recent past) has finally dawned upon the stakeholders. Grids are looking for a solution to meet demand effectively while containing carbon emissions. The supply of renewables can be increased by setting up a mix of wind, solar and battery storage capacities. Optimal solutions for the grid to meet demand by using renewables includes higher wind in the mix (of ~8GW per annum) led by the complementary nature of generation and cost curves of the wind."
The brokerage went on to add that India has launched series of policy initiatives: 1) single-stage closed bidding (vs reverse e-auction), 2) 10GW of wind auction per annum, and 3) wind-specific RPOs etc. These policies are likely to generate tailwinds for the industry and, we believe, Suzlon Energy (Suzlon), the market leader, is best suited to reap the benefits of the same. Also, the ‘net debt / EBITDA’ ratio on Suzlon’s balance sheet has declined to ~1x (from ~10x in FY22). Initiate with BUY.
On suggestion to positional investors in regard to Suzlon Energy shares, ICICI Securities said, "We believe Suzlon is best equipped to benefit from industry tailwinds. We expect a sharp uptick in earnings FY24E onwards. Initiate with BUY and a target price of ₹22 per share (assigning a multiple of 24x FY25E EPS)."
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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