Recent Performance of Suzlon Energy Shares
Suzlon Energy has seen a remarkable resurgence in its stock performance, with shares climbing 13.5% over just two days. Notably, on October 9, the stock enjoyed a 9.5% increase during intra-day trading, reaching a price of ₹80.60 per share, approaching its recent peak of ₹86. This upward momentum is a welcome change after experiencing a series of losses earlier, particularly an eight-day losing streak that finally broke on October 8, when the stock gained 4% following the removal of restrictions from the Additional Surveillance Measure (ASM) framework.
Impact of ASM Framework Removal
The removal from the ASM framework is significant as it indicates a decreased risk of price manipulation and less volatility associated with the stock. Consequently, this led to an increase in the upper circuit limit of Suzlon’s stock surge from the previously set 5% to a more favorable 10%, allowing for greater trading flexibility and potentially attracting more investors.
Strategic Partnerships and Bidding Opportunities
Adding to the positive sentiment surrounding Suzlon Energy is a media report suggesting that the company is actively seeking bids to supply wind turbines to Tata Power. The Tata Group is on the lookout for proposals for a total capacity exceeding 3 gigawatts (GW) to be installed at various wind-solar hybrid renewable energy facilities across the nation over the next three to five years.
Competition for Tata Power’s Wind Turbine Orders
Several original equipment manufacturers, including global leaders like Siemens Gamesa and Senvion India, are in contention alongside Suzlon to meet Tata Power’s wind turbine requirements. This competitive landscape not only elevates Suzlon’s visibility but also positions the company as a strong player in the rapidly growing renewable energy sector in India.
Enhancing Renewable Capabilities with Tata Group
Furthermore, Suzlon aims to elevate its renewable energy contributions within other Tata Group companies, such as Tata Steel, which could further enhance its market presence and operational effectiveness in the renewables domain.
Recent Major Orders Received
In a significant development earlier in September, Suzlon Energy secured a major order from NTPC Green Energy, specifically for the installation of 370 state-of-the-art wind turbine generators (WTGs) of the S144 model. Each of these wind turbines is designed to utilize a hybrid lattice tubular (HLT) tower with a rated capacity of 3.15 MW, which highlights Suzlon’s commitment to advancing its technology and meeting increasing energy demands.
Specifications and Advantages of the S144 Turbine
The S144 model is among the largest wind turbines in India, adaptable up to 3.15 MW based on the prevailing wind conditions. It features a hub height of 140 meters, which can be extended to 160 meters with its serial launch, making it not only efficient but also one of the tallest wind turbines in the country. Noteworthy is Suzlon’s claim that the S144 at a hub height of 160 meters generates 40% to 43% more energy compared to its previous turbine models, setting a new benchmark in energy production capacity.
Share Price Momentum and Investor Confidence
Suzlon’s shares have experienced a remarkable rally, culminating in new multi-month highs. Since March 2023, the stock has skyrocketed by an impressive 882%, fostering a robust investor sentiment. Key factors contributing to this surge include the company’s strong quarterly financial performance, continual efforts to mitigate debt, and notable new orders that have bolstered confidence in its future growth.
Record Order Book Expansion
By the end of Q1 FY25, Suzlon’s order book expanded to an astounding 3.8 GW, marking the largest order book in the company’s history. This substantial growth in demand for Suzlon’s renewable energy solutions indicates a promising outlook for the company’s ongoing projects and future opportunities.
Market Capitalisation Milestone Achieved
This impressive rise in stock price not only reflects investor confidence but has also propelled Suzlon’s market capitalisation beyond ₹1 lakh crore as of August. Such a milestone underscores Suzlon’s transition as a formidable player in the renewable energy sector, appealing to both retail and institutional investors alike.
Disclaimer: The insights and recommendations shared in this article reflect the viewpoints of various analysts and do not necessarily represent the views of any specific institution. Investors are encouraged to consult with certified financial experts before making any investment decisions.
