Penny stock Suzlon Energy: Can this major order act as a driving force for the tepid stock price?
Following Ashwani Kumar's resignation, JP Chalasani was appointed as Suzlon Energy's new CEO on April 5, 2023. As of this point, the order will be overseen and carried out under his supervision.
The benchmark indices were trading flat since the pre-opening session. Currently, Sensex and Nifty are up 0.30 per cent and 0.45 per cent respectively. Suzlon Energy opened around the level of Rs 8.17 and currently is trading at the day’s high of Rs 8.23, up by 0.74 per cent.
On April 12, 2023, Suzlon Group, India’s largest renewable energy solutions provider, announced a new order win for the development of a 50.4 MW wind power project for Sembcorp’s renewables subsidiary Green Infra Wind Energy Limited.
The order is part of the bid won from Railway Energy Management Company Limited (REMCL) by Sembcorp. This mandate will help achieve Indian Railways' objective of becoming a net‐zero carbon emitter by the end of this decade.
Suzlon will install 24 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each which is located in Karnataka and is expected to be commissioned in 2024.
The company will also provide comprehensive operation and maintenance services post-commissioning. Sembcorp was awarded the 50.4 MW capacity following the tariff‐based bidding process.
Sembcorp Green Infra, the company’s renewable energy subsidiary, has generation assets across 13 states and a presence across 18 states in India, with a portfolio of more than 3GW of wind and solar energy.
Following Ashwani Kumar's resignation, JP Chalasani was appointed as Suzlon Energy's new CEO on April 5, 2023. As of this point, the order will be overseen and carried out under his supervision.
The company has a market cap of over Rs 9,500 crore with 3 years CAGR of 55 per cent. The company reported positive numbers in its Quarterly Results (Q3) where net profit skyrocketed 105.26 per cent compared to the same quarter last year.
The stock generated multibagger returns of over 250 per cent in last 3 years and has a PE of 5.32x and an ROE of 387.03 per cent.
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