Suzlon share price gained over 2% on Friday after brokerage firm Investec initiated coverage on the stock with a bullish view. Suzlon shares rose as much as 2.6% to ₹56.28 apiece on the BSE.
Investec initiated coverage on Suzlon Energy Ltd. with a ‘Buy’ rating and a price target of ₹70 per share, implying an upside potential of 30% from Thursday’s closing levels.
According to media reports, Investec believes that Suzlon is well positioned to capitalise on the resurgence in the wind energy sector. The current order book of the wind equipment supplier Suzlon Energy is at an all-time high of 5.5 GW.
The brokerage firm noted that Suzlon has evolved into a net-cash entity with strong Return on Equity (RoE) and Return on Capital Employed (RoCE), supported by a rapidly expanding order book, a strong pipeline of bids and a fully optimised supply chain, reports said.
Investec estimates Suzlon Energy’s revenue and net profit to grow at a Compounded Annual Growth Rate (CAGR) of 55% and 66% respectively, over the financial year 2024 – 2027. The company’s RoE is also estimated to expand to 32% in FY2027 from 28.5% at the end of FY2024.
Suzlon Share Price Trend
Suzlon share price has fallen over 4% in one month and more than 16% on a year-to-date (YTD) basis. Suzlon shares have declined 30% in six months, but have rallied 23% in one year. The renewable energy stock has delivered multibagger returns of 550% in the past two years.
Suzlon stock price hit a 52-week high of ₹86.04 apiece on the BSE on 12 September 2024, and touched a 52-week low of ₹35.49 apiece on 14 March 2024.
At 2:35 PM, Suzlon shares were trading 0.73% lower at ₹54.45 apiece on the BSE, with a market capitalisation of more than ₹74,311 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
