Stock below Rs 30: This multibagger renewable energy stock witnesses a two-notch upgrade in its CRISIL rating!

In the last year, stock price has skyrocketed by an astonishing 231.27 per cent

The Suzlon Group, a global leader in renewable energy solutions, is a true powerhouse in the sustainable energy sector. With over 20 GW of wind energy capacity installed across 17 countries, they are at the forefront of the green energy revolution. Headquartered at the stunning Suzlon One Earth complex in Pune, India, the group is a shining example of innovation and commitment to a sustainable future.

But what's truly captivating is their recent stock performance. In the last year, Suzlon's stock price has skyrocketed by an astonishing 231.27 per cent. It's a story of resilience and vision, transforming Suzlon into a multibagger stock that's capturing the attention of investors worldwide.

The numbers speak volumes. During a recent conference call, the company's management revealed an impressive cumulative order book of 1,582 megawatts, including an order backlog of 1,433 megawatts as of June 30, 2023, and an additional 149 megawatts subsequently secured. This robust and diversified order book signals a bright future for Suzlon.

In Q1FY24, Suzlon demonstrated unwavering strength and improvement across key financial parameters. The balance sheet grew stronger, and the fundamentals of the company became more resilient, with a keen focus on the bottom line. Suzlon concluded the quarter ending June 2023 with a consolidated net worth of a whopping Rs 1,297 crore. Meanwhile, the gross debt has significantly reduced to Rs 1,806 crore, down from over Rs 13,000 crore in March 2020. The net debt as of June 30, 2023, stands at Rs 1,223 crore, resulting in a remarkable net debt-to-net worth ratio of less than 1. This is a testament to Suzlon's financial prowess.

Moreover, Suzlon reported a Profit After Tax (PAT) of Rs 93 crore for Q1 FY '24 before accounting for exceptional items. This is a remarkable turnaround, especially when compared to the negative Rs 37 crore in Q1 of the previous financial year (FY '23). Even the Q4 PAT of FY '23 was impressive at a positive Rs 68 crores, all before accounting for exceptional items.

In a recent development that further underscores Suzlon's growing strength, CRISIL, a reputable rating agency, upgraded the ratings of Suzlon Energy Ltd. to 'CRISIL BBB+/A2' from ‘CRISIL BBB‐/A3‘. This upgrade comes with a positive outlook for both long-term and short-term facilities. It reflects the company's robust financial position, operational excellence, and the favorable tailwinds within the renewable energy sector.

Notably, Dilip Shanghvi and Associates, prominent investors in Suzlon, have decided to terminate the amended and restated shareholders' agreement signed in 2015. In doing so, they've expressed their full support for Suzlon's ambitious growth plans and efforts to regain market share. Dilip Shanghvi himself remarked, "The company has seen a turnaround under a challenging environment, which is a positive sign."

Keep this stock on your radar for Wednesday’s trading session.

Disclaimer: The article is for informational purposes only and not investment advice.