Suzlon Energy stock gains 3% to hit near 52-week high; should you buy the multibagger?

Suzlon Energy has been a multi-bagger of a stock, delivering an impressive 277 percent return over the past year, nearly quadrupling investors' money.

Shares of Suzlon Energy gained over 3 percent on August 2, rebounding from previous session's losses due to profit-booking, as investors showed buying interest following impressive Q1 performance, bullish brokerage comments and positive business outlook.

At 11:11 am, Suzlon Energy shares were trading over 2.5 percent higher at Rs 69.72 apiece on the National Stock Exchange (NSE). In the past one month, shares of Suzlon Energy have rallied by a massive 31 percent.

The sharp uptick comes after the renewable energy player reported a solid 200 percent year-on-year (YoY) surge in net profit, at Rs 302 crore for the June quarter. Revenue rose 50 percent to Rs 2,016 crore, up from Rs 1,348 crore in the same period last year.

The wind turbine maker achieved its largest-ever order book of 3.8 GW in Q1FY25, which the management said provides strong visibility for future growth. Morgan Stanley has an 'Overweight' rating on Suzlon stock with a target price of Rs 58.5 per share, which the counter has already topped.

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Nuvama Institutional Equities has a 'hold' rating on Suzlon Energy with a target price of Rs 64, which has already been breached.

According to the domestic brokerage, Suzlon Energy's growth visibility is backed by an industry tailwind of 12–14GW TAM annually; technological edge + 4.5GW-plus nacelle capacity; high-margin O&M services; and repaired and robust balance sheet.

"We argue SUEL is capable of sustaining its lead in WTG/turnkey EPC execution and the company is best placed to capture demand with industry-leading EPC capacity (2GW yearly) and an optionality of repowering along with C&I demand, over and above 8–10GW of auctions," Nuvama said.

Suzlon 2.0 is a de-levered, optimised, profit-making business which has done away with its troubled past and is looking at a vibrant landscape of opportunities in India and abroad, noted Geojit as it maintained a 'Buy' on the stock with a target price of Rs 73.

JM Financial too has reiterated its 'Buy' rating in Suzlon and raised the target price to Rs 71 from Rs 54 earlier.

"We believe that gradual building of momentum for higher execution, healthy order book, more healthy bid pipeline, strengthening of balance sheet and the organisation are driving the company for the next-level of growth," JM Financial said.

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So far this year, Suzlon Energy stock has zoomed 81 percent. In comparison, benchmark Nifty 50 rose 14 percent during this period. It has been a multi-bagger of a stock, delivering an impressive 277 percent return over the past year, nearly quadrupling investors' money.

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