Shares of Suzlon Energy rose 4 percent on July 11 after the renewable energy solutions provider announced an order win for the development of a 47.6 MW wind power project for The KP Group.
The project is located at Vagra in Bharuch district in Gujarat and is expected to be commissioned in 2024, the company said in a regulatory filing.
At 10:53 am, shares of the company were trading 2.5 percent higher at Rs 17.81 on the BSE. The scrip has shot up nearly 120 percent in the past three months.
Suzlon Energy will supply S133 wind turbines and supervise execution and commissioning of the project. The company will also provide comprehensive operations and maintenance services post commissioning.
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JP Chalasani, Chief Executive Officer, Suzlon Group said, “The power generated from this project will serve the Commercial & Industrial (C&I) consumer segment, which is a key segment to drive deeper penetration of renewables in India”.
Suzlon Energy has enjoyed a market share of 33 percent in India’s domestic market based on total installations. It has 20GW of operational wind power capacity globally and is well ahead of its competitors, pointed out ICICI Securities. The company’s existing orderbook at 1.5GW bodes well for execution through the next two years, the domestic brokerage firm highlighted.
ICICI Securities also noted that Suzlon Energy has reduced leverage by restructuring its debt and by raising money through a rights issue. With these positives, the brokerage firm expects a sharp uptick in earnings from FY24 onwards. It initiated coverage on the stock with a ‘buy’ rating and target price of Rs 22 per share which implies a multiple of 24 times its FY25 EPS.
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