Suzlon Energy Ltd. witnessed a decline of more than 5.4% in its share price during Monday’s trading session, breaking its five-day upward trend amid prevailing weak market sentiment. Opening at ₹42.50 per share on November 20, the stock dipped to ₹40.20 in the intraday session on NSE.
In November, Suzlon’s share price had surged by nearly 28.4%, driven by speculation about its potential inclusion in AMFI’s midcap category during the January reshuffle. The recent rally was further fueled by expectations of Suzlon Energy’s addition to the MSCI Global Standard Index during the reshuffling on November 15, an inclusion that materialized last week.
Closing at ₹42.30 on the preceding Friday, the stock had reached a 52-week low of ₹6.96 on March 28, 2023, and hit a 52-week high of ₹44 on November 17, 2023, on BSE.
Suzlon Energy’s stocks have exhibited remarkable growth over the past year, with a 50% surge in the last month alone and a doubling in value over the past three months. Year-to-date, Suzlon shares have soared by over 296%, contributing to an impressive one-year growth of 418%.
Despite a slight dip in revenue from ₹1,430 crore to ₹1,417 crore in the second quarter of FY24, the wind turbine manufacturer reported a notable 45% YoY increase in net profit, amounting to ₹102 crore.
JM Financial, a prominent brokerage firm, foresees Suzlon Energy achieving a Compound Annual Growth Rate (CAGR) of 38% in revenue and 43% in EBITDA from FY23 to FY26. Adjusting its projections upward for FY25 and FY26, JM Financial attributes this optimism to robust order inflow, improved execution visibility, and a more favorable product portfolio.
The brokerage firm has reiterated its ‘Buy’ rating for the stock and raised the target price to ₹37 per share, up from the previous ₹30 per share.