Suzlon Energy Share: Another multibagger in the making in the renewables space is Suzlon Energy. Investors poured in money into the company considering its impressive stock performance. Suzlon’s stock has jumped 255% over the past one year, and has tripled return on investors’ capital while the Nifty went up by 28%. This is one of the most surprising values with almost zero investment risk. That makes Suzlon a true blue multibagger.
Suzlon Energy Touches New 52 Week High
On this day September 12, 2024 the share price for Suzlon Energy reached a fresh 52 week high of 86.04₹ on the nse for the third trading session in a row Iit continued in its up trend. The stock touched 5% upper circuit in the previous two sessions reflecting growing investor interest since it was made available for purchasing.
Suzlon Energy Share: Suzlon Energy Growth
There are many reasons which have aided in dragging the price of the stock of Suzlon to recent highs.
Debt Clearance: Suzlon successfully eliminated almost ₹1500 crores of loan outstanding as of FY23-24. This was a crucial finance overhaul. For the first time in 10 years, this move managed to turn the company’s net worth positive, enhancing its market worth and reassuring market participants.
Fundraising and Key Orders: Suzlon raised the funds and was successful in getting NTPC Green Energy ltd, a division of NTPC. This success has also made investors more confident in Suzlon. The win made Suzlon one of the winning companies in the clean energy industry.
Key Investors: The presence of Blackrock among others in the company increased the demand for its stocks by assuring its customers of the company’s growth prospects.
Rating of Analysts and Opportunities Going Forward
The analysts have kept their hopes high about Suzlon by assigning high ratings in terms of target prices:
Seeing upside potential in stocks, Morgan Stanley has also retained its rating on Suzlon with an in-built ‘overweight’.
Suzlon’s target once again has been upgraded to ₹80 from ₹70 by ICICI Securities with an ‘Add’ review. In valuing Suzlon, the firm ascribes 50 times the stock’s earnings for FY26, pegged at 1.60 per share.
JM Financial noted that Startup Suzlon moving out from its landmark corporate headquarters called Suzlon One Earth is a good indication as this will boost their operations and financial condition. Suzlon expects to incur a yearly rental cost of about 12% of the sale price for twelve months which is also favorable to the company.
The Zero Emission Energy Leader
Suzlon Energy is at the forefront of the renewable energy business focusing on wind turbines and solar energy solutions. The company services include a wide range which includes solar irradiation evaluation, purchasing land, building infrastructure and management of the asset for its lifetime. Suzlon’s range of competencies in majorly wind and solar energy places it strategically within India’s renewable energy narrative.
Stock Performance in comparison with Nifty index
Suzlon energy rallied by 255% in the past year already outpacing the Nifty index. For the current year, Suzlon’s stock has appreciated more than 110%, next to Nifty whose earnings stood at 14%. These figures drill home the point regarding and underscoring Suzlon’s Presents unique and attractive returns within the energy sector.
Outlook: Strong Growth Potential
The latest events regarding Suzlon Energy’s financial results and the company’s strategy suggest that the company’s growth is stable. Stock analysts hydrated as expected remain positive on its stock as it outlook continues to be bright owing to renewable energy focus of Suzlon. With the company’s return on capital averaging above target even before the transition to fully asset light model, it is likely to improve even further.
Conclusion: An Up and Comer in the Renewable Energy Sector
Last year, Suzlon Energy’s stock appreciated by an astounding 255% making the company outperform its broader market index. As well as put satisfaction in the pockets of its investors. We believe that Suzlon is very well set to build on its growth given its book strength. Partnerships and the potential of renewable energy market in India. This developing crucial player in the renewable energy industry will be the focus of investors and analysts in the broader and will be seen advancing by capitalizing its advantages to keep lead position in the market. Read more PM Modi’s Gaming Banter: A Playful Peek into Political Discourse
