The share price of Suzlon Energy Ltd. snapped its five-day winning streak by falling over 5.4% in Monday’s trading session amid weak market sentiment. On November 20, the Suzlon stock opened at ₹42. 50 per share in the morning however fell to ₹40.20 during the intraday session on NSE.
Suzlon’s share price gained almost 28.4% in November this year following the news of its possible inclusion in AMFI’s mid-tier category during the January reorganization. Additionally, another factor contributing to last week’s rally was the anticipation that Suzlon Energy will be added to the MSCI Global Standard Index in the upcoming reshuffle on November 15. The renewable energy stock was officially incorporated into the index last week.
The stock, which closed at ₹42.30 on Friday last week, fell to a 52-week low of ₹6.96 on March 28, 2023 and rose to a 52-week high of ₹44 on November 17, 2023 on BSE.
The shares of Suzlon Energy have experienced impressive growth in the last year. The stock price is up 50% in the last month alone and has more than doubled over the last three months. So far, Suzlon shares have soared over 296%, and the year-to-date growth stands at a staggering 418%.
Meanwhile, the wind turbine maker reported a 45% year-on-year (YoY) increase in its net profit, reaching ₹102 crore in the second quarter of FY24. Although the company’s revenue in Q2FY24 experienced a slight decline, going down to ₹1,417 crore from ₹1,430 crore in the corresponding period last year.
JM Financial, a brokerage firm, forecasts that Suzlon Energy will achieve a Compound Annual Growth Rate (CAGR) of 38% in revenue and 43% in EBITDA from FY23 to FY26. The brokerage has adjusted its projections for FY25 and FY26 upwards, citing robust order inflow, improved execution visibility and a more favorable product portfolio.
The firm reaffirmed its ‘Buy’ rating on the stock and increased the target price to ₹37 per share, more than the previous one ₹30 per share.
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Updated: 20 Nov 2023, 15:04 IST