Suzlon Energy shares hit 52-week high, continues to gain for third consecutive session; here’s why

Suzlon Energy's shares surged to a 5 per cent upper circuit for the third straight session, hitting a new 52-week high of ₹86 in Wednesday's BSE trading. This boost was fueled by favorable investor sentiment after Morgan Stanley assigned an overweight rating to the renewable energy firm.

The stock experienced significant trading activity, with approximately 13.94 crore shares exchanged on the NSE. The total traded value amounted to ₹1,173.4 crore.

Suzlon has recently won a major contract of 1,166 MW from NTPC Green Energy, the renewable energy division of state-owned NTPC. This substantial public sector order signifies Suzlon's comeback to significant contracts following a period of ineligibility due to its negative net worth. Morgan Stanley anticipates that this order will improve Suzlon's earnings outlook for FY26-FY27.

As per the contract, Suzlon will install 370 S144 wind turbines (WTGs), each with a rated capacity of 3.15 MW, to produce electricity for 3 million households. This project, which is the largest wind energy order in India, will be carried out at three locations in Gujarat.

The agreement outlines that Suzlon will supply the wind turbines, oversee their erection and commissioning, and provide ongoing operations and maintenance services once the project is operational.

What's behind the rally?

Suzlon shares recently garnered attention as the company agreed to sell and lease back its prime real estate, One Earth Property in Pune, for the next 5 years at ₹440 crore. Following this development, domestic brokerage ICICI Securities increased its target price for the stock from ₹70 to ₹80.

The market capitalization of the green energy company increased to ₹1.14 lakh crore on the BSE. Suzlon Energy's stock has surged 266 per cent over the past year and 827 per cent over the last two years.

The stock, a notable performer, recorded a high turnover of ₹110 crore today, with 12.935 million shares traded on the BSE. On September 13, 2023, Suzlon Energy shares hit their 52-week low of ₹21.71. With a beta of 0.9, Suzlon Energy shares show low volatility over the past year.