3,800-MW Order Book: LIC-backed stock under Rs 75 in focus as company executes conveyance deed with OE Business Park Pvt Ltd
The stock gave multibagger returns of 210 per cent in 1 year and a whopping 2,220 per cent in 5 years.
On Wednesday, the stock market ended the day in red with the BSE Sensex Index down 0.25 per cent at 82,353 and the NSE Nifty-50 Index down 0.32 per cent at 25,199. Along with the market in red, one multibagger stock plunged 0.43 per cent to Rs 74.18 per share with an intraday high of Rs 74.90 and an intraday low of Rs 73.30. The stock’s 52-week high is Rs 84.40 and its 52-week low is Rs 21.71. The Life Insurance Corporation of India (LIC) holds a 1.03 per cent ownership stake.
The stock name is SUZLON ENERGY LTD.
Suzlon Energy Limited has announced the sale of its corporate office, One Earth Property, to OE Business Park Private Limited (OEBPPL). The sale is part of a strategic transaction that involves a conveyance deed, a leaseback agreement, and option agreements. OEBPPL is a special-purpose vehicle backed by 360 ONE Alternates Asset Management Limited. Following the sale, Suzlon will lease One Earth Property back for up to five years with sub-leasing and licensing rights. Additionally, the company has entered into option agreements with OEBPPL's security holders, providing Suzlon with the right to repurchase the property and granting the security holders the right to sell their securities.
The sale of One Earth Property is expected to generate Rs 440 crore in consideration, including Rs 411.21 crore for the conveyance and Rs 28.79 crore for stamp duty and registration charges. The buyer, OE Business Park Private Limited, is not affiliated with Suzlon's promoters or group companies. The transaction does not fall within related party transactions and is being conducted at arm's length. The sale of the corporate office is outside the scope of any Scheme of Arrangement and was previously approved by Suzlon's shareholders at an extraordinary general meeting held on March 25, 2022, in compliance with regulation 37A of the LODR Regulations.
About the Company
Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated WTG manufacturer. It also undertakes installation and O&M of all WTG sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears and nacelles. Apart from manufacturing, it offers a full gamut of wind project planning and execution services, including wind resource assessment, infrastructure and power evacuation, technical planning and execution of wind power projects. It also offers O&M services in India and overseas countries.
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Suzlon Energy Ltd is a mid-sized company in the power sector, listed on the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) with a market capitalization surpassing Rs 1,00,000 crore. The company is also included in the BSE's Power Index, reflecting its focus on the power industry. As of June 30, 2024, Suzlon has a healthy order book of 3,800 megawatts, indicating upcoming projects and potential revenue generation.
Results: According to Quarterly Results, the net sales increased by 50 per cent to Rs 2,021.6 crore and net profit increased by 200 per cent to Rs 302.3 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 9.4 per cent to Rs 6,529.1 crore and net profit decreased by 77 per cent to Rs 660.35 crore in FY24 over FY23. The company maintained a robust financial position with a net cash balance of Rs 1,197 crore as of June 30, 2024.
In June 2024, FIIs bought 27,17,11,310 shares and increased their stake to 21.53 per cent and DIIs increased their stake to 9.17 per cent stake compared to 19.57 per cent and 6.30 per cent respectively, in March 2024. The stock gave multibagger returns of 210 per cent in 1 year and a whopping 2,220 per cent in 5 years. Investors should keep an eye on this mid-cap power stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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