Suzlon share price extends rally to hit 52-week high; jumps over 12% in one week

Suzlon share price traded over 3% higher on Thursday, extending its rally for the fourth straight session, with the stock rising more than 12% in one week. Suzlon shares gained as much as 3.73% to hit a fresh 52-week high of ₹42 apiece on the BSE.

The rally in Suzlon shares comes on the back of positive sentiment after the stock was included in the MSCI Global Standard Index.

In its November index review, the global index provider added Suzlon Energy along with 8 other Indian companies in India Standard Index.

Read here: Suzlon hits 52-week high, IndusInd Bank, Paytm, Tata Motors DVR shares rally on MSCI Global Standard Index inclusion

The Morgan Stanley Capital International (MSCI) indices are widely tracked by passive funds and any inclusion of stocks or increase in weightage of stocks in these global indices are expected to lead to inflows from passive funds tracking these indexes.

The MSCI Global Standard Index inclusion may lead to inflows worth $264 million in Suzlon Energy, according to Nuvama Alternative and Quantitative Research.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

Suzlon Energy shares have witnessed a stellar rally over the past year. Suzlon stock price has jumped 50% in one month, while it has more than doubled in the past three months. Suzlon shares have jumped more than 296% year-to-date (YTD) and 418% in one year.

Meanwhile, the wind turbine manufacturer Suzlon Energy posted a 45% year-on-year (YoY) jump in their net profit to ₹102 crore in the second quarter of FY24. The company’s revenue in Q2FY24 declined marginally to ₹1,417 crore from ₹1,430 crore during the same period last year. 

Read here: Suzlon Energy Q2 Results: Net profit jumps 45% YoY to ₹102 crore, revenue drops marginally 

Brokerage firm JM Financial expects Suzlon Energy to deliver revenue and EBITDA CAGR of 38% and 43% respectively over FY23-26E. 

The domestic brokerage revised its estimates for FY25 and FY26 upwards driven by healthy order inflow, better execution visibility and an improving product portfolio. 

It maintained a ‘Buy’ rating on the stock and raised the target price to ₹37 per share from ₹30 per share.

At 11:55 am, Suzlon Energy shares were trading 3.73% higher at ₹42.00 apiece on the BSE.

Catch Live Market Updates here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment