Suzlon Energy shares back to winning ways, gain nearly 13% in 2 days. What’s behind the rebound?

Suzlon Energy's share price surged 9.5% today, taking its two-day gains to over 13%. The stock's removal from the ASM framework reduces volatility concerns. The company is competing for a Tata Power contract.

A Ksheerasagar
Published9 Oct 2024, 01:37 PM IST
Suzlon Energy stock resumes winning streak, gains over 9%. What’s fueling the rally?
Suzlon Energy stock resumes winning streak, gains over 9%. What’s fueling the rally?

Shares of Suzlon Energy resumed their winning streak after a brief pause, rising 13.5% in two days. The stock rose 9.5% in intra-day trade on Wednesday, October 9, to 80.60 each, close to their recent peak of 86. 

On Tuesday, the it broke an eight-day losing streak, gaining 4% after it was removed from the Additional Surveillance Measure (ASM) framework. Following this development, its upper circuit limit of the stock was revised upwards to 10% from 5% earlier.

Removal from the ASM framework indicates a reduced likelihood of price manipulation or volatility concerns associated with the stock.

Also Read | Midcap stock Suzlon Energy shares hit 5% lower circuit, slide for 8th session

In addition, a media report suggested that the company is actively pursuing bids to supply wind turbines to Tata Power. The Tata Group is seeking proposals for wind turbines with a total capacity exceeding 3 gigawatts (GW) to be installed at its wind-solar hybrid renewable energy facilities across the country over the next three to five years, as reported by the Economic Times.

Original equipment manufacturers of wind turbines, including Siemens Gamesa, Senvion India, Envision Energy, and Suzlon Energy, are competing for the opportunity to fulfil Tata Power's requirements, the report added.

Furthermore, the company aims to enhance its renewable energy capabilities within other Tata Group companies, such as Tata Steel. 

Also Read | Power Grid may benefit from higher investments in renewable energy

In early September, Suzlon Energy received a significant order from NTPC Green Energy, the renewable energy division of the state-owned power producer NTPC, for the installation of 370 wind turbine generators (WTGs) of the S144 model. Each turbine will be equipped with a hybrid lattice tubular (HLT) tower and a rated capacity of 3.15 MW.

The S144 wind turbine is among the largest in India and can be extended up to 3.15 MW, depending on the wind conditions at the site. It is available with a hub height of 140 meters, which can be increased to 160 meters with its serial launch.

Also Read | Suzlon share price: Experts give ’buy’ tag despite 2800% rally in five years

Suzlon has claimed that the S144, at a hub height of 160 meters, is also the tallest wind turbine in India. This new fleet is designed to provide 40% to 43% higher energy generation compared to Suzlon's previous turbine models.

Suzlon's Share price history

The company's shares have shown robust momentum in the market, reaching new multi-month highs. Since March 2023, the stock has followed a strong upward trend, with an impressive gain of 882% to date.

Investor confidence has been bolstered by the company's strong quarterly financial performance, efforts to reduce debt, and notable order wins. By the end of Q1 FY25, its order book expanded to 3.8 GW, marking the largest in the company's history.

Also Read | Suzlon Energy jumps 5% as Morgan Stanley sees earnings boost from NTPC order

This significant surge in share price has also propelled the company's market capitalisation past the 1 lakh crore mark in August.

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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First Published:9 Oct 2024, 01:37 PM IST
Business NewsMarketsStock MarketsSuzlon Energy shares back to winning ways, gain nearly 13% in 2 days. What’s behind the rebound?

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