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Suzlon Energy, a prominent player in the renewable energy sector, has been grabbing headlines as its stock price has soared to a fresh 52-week high, attracting significant investor interest. Over the past two trading sessions, Suzlon Energy Ltd shares surged nearly 5%, approaching its upper circuit limit and reaching new heights. Trading at Rs 52.85 at 12:39 pm, the stock has witnessed a remarkable climb of nearly 9% in the recent trading sessions, showcasing a strong performance. This surge in Suzlon Energy’s shares can be attributed to favorable government policies supporting the renewable energy sector, making it an attractive investment option on Dalal Street.
Technical analysts, such as Kushal Gandhi from Stoxbox, remain bullish on the stock, highlighting a potential rounding bottom pattern with a 30% depth, indicating strong buyer demand and further accumulation. In a recent development, global brokerage firm Morgan Stanley has initiated coverage on Suzlon Energy with an ‘overweight’ recommendation, setting a target price of Rs 58.5 per share. The brokerage emphasized the company’s improved position post deleveraging and reduced fixed operating costs, positioning it well to benefit from the energy transition market.
Moreover, domestic brokerage firm Anand Rathi Shares and Stock Brokers reiterated its ‘Buy’ rating on Suzlon Energy, pointing out the impressive growth opportunities ahead. Despite reporting a 9% fall in consolidated net profit in the quarter ended March 31, 2024, the company posted a revenue growth of 29% to Rs 2,179 crore. With mutual funds holding a stake worth Rs 2,172 crore as of May 2024, Suzlon Energy continues to attract investor attention with its strong performance and growth prospects.
ICICI Securities has raised its target price for Suzlon Energy to Rs 54, citing a turnaround year for the company with becoming net debt free, robust execution growth, and a strong order inflow. The firm’s revenue grew 30% YoY to Rs 2,200 crore in Q4FY24, with a substantial increase in EBITDA and adjusted PAT. The positive outlook for the wind industry in the medium to long term further reinforces the bullish sentiment surrounding Suzlon Energy.
In summary, Suzlon Energy’s remarkable journey to a fresh 52-week high reflects its resilience and growth potential in the renewable energy space. With strong endorsements from brokerage firms and a solid financial performance, the stock continues to be a standout choice for investors looking to capitalize on the evolving energy landscape.
