Shares of Suzlon Energy gained for the third straight day to hit a fresh 52-week high of Rs 86.04 on the National Stock Exchange (NSE). The fresh high comes after the multibagger stock hit a 5 percent upper circuit in the previous two sessions.
Suzlon Energy is a renewable energy solutions provider. It produces wind turbines and offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.
Suzlon Energy shares have been on uptrend since Morgan Stanley reaffirmed its ‘overweight’ rating, following the company's win of India’s largest wind energy order from NTPC Green Energy Ltd, a subsidiary of NTPC Ltd.
The stock has attracted significant buying interest after the company raised funds and cleared nearly Rs 1,500 crore in debt during FY23-24, turning net worth positive for the first time in a decade. Prominent investors like Blackrock joined as shareholders.
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ICICI Securities recently raised its target price for Suzlon Energy to Rs 80, up from Rs 70, while maintaining an 'Add' rating due to the recent surge in the stock's value. The firm values Suzlon at 50 times its projected FY26 earnings of Rs 1.60 per share.
JM Financial is also bullish on Suzlon as it stated that the company's sale of its iconic corporate office, Suzlon One Earth, at a fair value, would boost the company’s financial strength and operational efficiency.
With Suzlon paying annual rent equivalent to 12 percent of the sale consideration against an FY24 ROE of 28 percent, the brokerage sees the asset-light strategy as value-accretive.
At 11:44 am, Suzlon Energy shares were trading largely flat at Rs 81.17 on NSE. The multibagger stock has rallied over 110 percent so far this year, outperforming Nifty's returns of 14 percent.
In the past 12 months, the counter has risen around 255 percent, more than tripling investors' capital. In comparison, Nifty rose 28 percent during this period.
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