Suzlon Energy shares surge 5%, Geojit gives Rs 68 target price

Shares of Suzlon Energy jumped nearly 5% on Thursday, trading at Rs 65.40, as the company continues to attract investor attention amid its robust financial performance and strategic growth plans. The renewable energy company, known for its wind turbine generators, is benefiting from increased interest driven by changing market dynamics and India’s push for renewable energy adoption.

Geojit Financial Services has issued a "buy" recommendation for Suzlon Energy, with a target price of Rs 68, indicating a potential upside of nearly 9% from the Tuesday closing price of Rs 62.35. Despite recent volatility and the stock trading about 30% below its 52-week high of Rs 86.04, analysts remain optimistic about Suzlon’s long-term growth prospects.

As investors watch closely, the company’s performance will likely be influenced by both global energy trends and the strategic steps it takes to navigate an increasingly competitive landscape. Suzlon's ability to capture market share and expand its portfolio of wind energy solutions could significantly impact its growth trajectory moving forward.

Founded in 1995, Suzlon Energy operates in the power sector and boasts a market capitalization of Rs 84,951.61 crore. The company’s revenue streams include wind turbine generators, sale of services, other operating revenue, and scrap. In FY23, Suzlon delivered 256 MW of WTGs in the second quarter—its highest Q2 delivery in seven years—contributing to a 48% year-on-year growth in consolidated revenues.

Geojit Financial Services highlights several factors supporting its bullish stance, including Suzlon’s acquisition of Renom Energy, attractive valuations, and expectations of a 67% compound annual growth rate (CAGR) in WTG deliveries between FY24 and FY27.

Furthermore, Suzlon has achieved a milestone by becoming debt-free and holds Rs 1,277 crore in net cash, positioning the company to capitalise on emerging opportunities in the renewable energy sector.

The company sees strong demand from the commercial and industrial segment, which accounts for 54% of Suzlon’s 5.1 GW order book. Beyond wind energy, the company is diversifying into manufacturing castings and forgings for defence, railways, and oil & gas sectors, with new orders expected by next year.

As Suzlon continues to execute its growth strategy and expand its renewable energy footprint, analysts view the current stock levels as a favourable entry point for long-term investors.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)