1,613-MW order book and FIIs & DIIs increase stake in this multibagger penny stock; Hit 52-week high on RLMM listing of wind turbines – A game changer!
The stock has given multibagger returns of 390 per cent in just 6 months while the BSE Sensex Index is up by 6.88 per cent.
Indian stock markets were trading in the red on Friday, with the BSE Sensex Index down 0.28 per cent at a level of 64, and the NSE Nifty-50 Index down 0.17 at 19,732.
Though the market in green, this multibagger penny stock bucked the trend and traded in the green. Let us know about this stock:
The stock we will be discussing today is SUZLON ENERGY LTD.
Suzlon Group, India's largest renewable energy solutions provider, has announced the RLMM listing of its S144 - 3 MW series of wind turbines, which can be extended to 3.15 MW, making them a powerful force in the market. This listing is an important milestone for the successful commercialization of the product.
Suzlon has already installed the first prototype of this series at a hub height of 160 meters with a Hybrid Lattice Tubular (HLT) tower at the Gondal site in Gujarat. The product is currently undergoing serial manufacturing and commercialization.
Suzlon's S144, 3 MW - 3.15 MW wind turbine series has been granted the RLMM (Revised List of Models & Manufacturers) Listing by the MNRE (Ministry of New and Renewable Energy).
This is an important milestone required for the successful commercialization of the product. It also continues Suzlon's focus on making more wind sites in India economically viable to unlock the country's true wind energy potential.
The wind energy sector in India is poised for strong growth, with order inflows forecast to exceed consensus expectations. Suzlon, a leading wind turbine manufacturer, is anticipated to benefit from this growth as its competitor, Siemens Gamesa, faces challenges in Europe. While margins for the wind turbine generator (WTG) business are expected to remain consistent with guidance, there is potential for upside due to the sector's robust growth prospects. Green hydrogen, a clean energy carrier produced using renewable electricity, is emerging as a long-term catalyst for wind power adoption. Additionally, Suzlon's robust export presence in North America further strengthens its position in the global wind energy market.
According to the Quarterly Results, the net sales decreased by 1.14 per cent to Rs 1,421.43 crore while the net profit increased by 81.14 per cent to Rs 102.29 crore in Q2FY24 compared to Q2FY23. In its annual results, the net sales decreased by 9.29 per cent to Rs 5,970.53 crore in FY23 over FY22. The company reported a turnaround story as it reported a net profit of Rs 2,887.29 crore in FY23 compared to a net loss of Rs 166.19 crore in FY22, an increase of 1,836.3 per cent. As of September 2023, FIIs increased their stake from 7.79 per cent to 10.88 per cent and DIIs increased their stake from 5.90 per cent to 9.81 per cent stake in the company.
Earlier, Suzlon Energy's ratings have been upgraded by CRISIL from 'CRISIL BBB‐/A3' to 'CRISIL BBB+/A2' with a positive outlook. This is due to the company's strengthened financial position, operational excellence, and favourable sectoral tailwinds. The upgrade is also a result of Suzlon's successful repayment of its entire term debt through a QIP of approximately Rs 2,000 crore.
Suzlon Energy has been included in the closely watched MSCI Global Standard index as part of its latest review. This inclusion is expected to bring in an inflow of 264 million.
Suzlon Energy is a leading renewable energy company with a market capitalization of Rs 57,383 crore. The company's stock price has grown at a compounded annual growth rate (CAGR) of 100 per cent over the past three years. As of September 30, 2023, the company's cumulative order book stands at over 1,613 MW and an ace investor Mukul Agarwal holds 13,00,00,000 or 13 crore shares in a multibagger heavy electrical company.
On Friday, shares of the company gained 4.61 per cent and made a new 52-week high of Rs 44 per share. The stock hit back-to-back 52-week highs in recent trading sessions. The stock has given multibagger returns of 390 per cent in just 6 months while the BSE Sensex Index is up by 6.88 per cent. Suzlon Energy is a penny stock that investors should keep under their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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