Suzlon’s share price increased over 3% on Thursday, marking its fourth consecutive session of gains, and rising more than 12% in a week. The stock reached a new 52-week high of ₹42 on the BSE.
The positive momentum follows Suzlon’s inclusion in the MSCI Global Standard Index during the November index review. Suzlon Energy, along with eight other Indian companies, was added to the India Standard Index. The MSCI indices are closely monitored by passive funds, and any inclusion or weightage increase is expected to attract inflows from funds tracking these global indexes.
According to Nuvama Alternative and Quantitative Research, the MSCI Global Standard Index inclusion could result in inflows of around $264 million into Suzlon Energy.
Over the past year, Suzlon Energy shares have experienced a remarkable rally, with a 50% increase in one month, more than doubling in the last three months, a 296% surge year-to-date (YTD), and a 418% rise in one year.
In Q2FY24, Suzlon Energy reported a 45% YoY increase in net profit to ₹102 crore, while revenue slightly declined to ₹1,417 crore from ₹1,430 crore in the same period last year.
JM Financial, a brokerage firm, anticipates Suzlon Energy to achieve a revenue and EBITDA CAGR of 38% and 43%, respectively, over FY23-26E. The brokerage maintained a ‘Buy’ rating on the stock and raised the target price to ₹37 per share from ₹30 per share.
As of 11:55 am, Suzlon Energy shares were trading 3.73% higher at ₹42.00 on the BSE.
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