Suzlon Energy Share Price Update
Suzlon Energy, a prominent player in the renewable energy sector, has recently made headlines following the receipt of the largest wind energy order ever in India. This significant milestone came from NTPC Green Energy, a subsidiary of NTPC Limited, which specializes in renewable energy projects. Following this announcement, Suzlon’s shares surged, initially reflecting a strong market response.
As of the latest trading session, Suzlon’s shares are priced at Rs 75.00, showcasing a modest gain of 0.36% on the Bombay Stock Exchange (BSE). At one point during the day, the stock peaked at Rs 77.18, marking an intra-day increase of 3.28%. However, it’s important to note that the stock is currently down about 11% from its one-year high of Rs 84.40, reached on August 13, 2024, as investors took profits after the initial surge.
Details of the NTPC Project
NTPC has entrusted Suzlon with an impressive order of 1166 MW. As part of this project, Suzlon will install 370 of its S144 wind turbine generators, each equipped with Hybrid Lattice Tubular (HLT) towers capable of generating 3.15 MW. The project covers two initiatives from NTPC Renewable Energy and one associated with Indian Oil NTPC Green Energy. This monumental order has significantly boosted Suzlon’s order book, which now totals nearly 5 GW as of September 3, 2024.
Corporate Developments
In addition to the NTPC order, Suzlon recently completed the acquisition of a 51% equity stake in Renom Energy, which has positively influenced its stock performance. Earlier, in August, the board approved the purchase of a 75% stake in Renom Energy for Rs 660 crore. The recent acquisition of the 51% stake was valued at Rs 400 crore, with plans to acquire an additional 25% stake for Rs 260 crore within the next 18 months. This strategic move, revealed through an exchange filing, is set to enhance Suzlon’s capabilities and expand its operations.
Brokerage Insights
Market analysts have been keeping a close eye on Suzlon Energy, with ICICI Securities recently raising its target price from Rs 70 to Rs 80, maintaining an ‘add’ rating for the stock. Analysts from the firm suggest that Suzlon is gearing up to raise capital to bolster its operational capacity and secure additional orders. Furthermore, JM Financial indicated that the sale of Suzlon’s corporate office, Suzlon One Earth, fetched a favorable price, which is expected to strengthen the company’s financing and operational capabilities. This will elevate Suzlon’s working capital, essential for the timely execution of its projects.
Conclusion
The recent developments surrounding Suzlon Energy highlight its strategic growth and potential in the renewable energy sector. With a significant order inflow from NTPC and strategic acquisitions underway, Suzlon is positioned for continued expansion. Investors are advised to remain vigilant and consider expert insights when making investment decisions in this dynamic sector.
