Wind energy player Suzlon Energy's market capitalisation surged past the Rs 1 lakh crore mark for the first time in trade on August 9, rising over three percent to hit a fresh 52-week high.
As of close on August 8, only 98 companies had a market capitalisation over the Rs 1 lakh crore mark, which makes Suzlon Energy the 99th firm to hit this milestone.
Over the past five sessions, the stock has surged over nine percent, while soaring over 280 percent in the past 12 months. At 11.35 am, Suzlon shares were quoting Rs 74.5 on the NSE, higher by 2.17 percent in trade.
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On August 6, Suzlon had announced an agreement for acquisition of 76 percent stake in Renom Energy Services from the Sanjay Ghodawat Group (SGG).
Renom is the largest Multi Brand Operations and Maintenance service (MBOMS) provider in the country with assets of 1,782 MW in Wind, 148 MW in Solar, and 572 MW in BOP under maintenance across customer segments.
It operates in seven states and has experience maintaining turbines from 14 different manufacturers. The acquisition will occur in two stages: an immediate purchase of 51 percent for Rs 400 crore and an additional 25 percent within 18 months for Rs 260 crore.
Morgan Stanley has issued an Overweight call on Suzlon with a target price of Rs 73.4 per share, adding that the acquisition of Renom Energy Services marks a strategic entry into the multi-brand Operations and Maintenance Services (OMS) sector.
The implied valuation of 4x price to sales is considered cheaper than its listed peer, MS said in its note.
JM Financial has maintained its 'Buy' rating on Suzlon stock. The company is likely to leverage Renom for capturing 32GW non-Suzlon OMS market (10GW immediate opportunity) which is growing with India's target of 100 GW wind energy capacity by FY30.
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