LIC-backed stock-Suzlon hits a 14-year high of Rs 71.45! Multibagger stock is on fire with FIIs and DIIs increasing their stake; Is this the next big green energy winner?

The stock gave multibagger returns of 290 per cent in 1 year and a whopping 1,740 per cent in 5 years

On Friday, one multibagger stock hit a 5 per cent upper circuit to Rs 71.45 from its previous closing of Rs 68.05 per share backed by Life Insurance Corporation of India (LIC) (LIC owns a 1.03 per cent stake in this company). The stock also made a fresh new 52-week high of Rs 71.45 per share. Additionally, the stock also made a 14-year high of Rs 71.45 per share.

The champion stock name is SUZLON ENERGY LTD.

The company reported a stellar Q1FY25 performance, with a year-over-year profit growth of 200 per cent to Rs 302 crore. This strong performance was driven by some factors, including a 103 per cent increase in deliveries to 274 MW, the highest Q1 delivery in 7 years. Revenue also grew by 50 per cent to Rs 2,016 crore and EBITDA reached a record high of Rs 370 crore, representing an 86 per cent increase year-over-year. The company also reported a healthy net cash position of Rs 1,197 crores as of June 30, 2024.

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.

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 exceeding Rs 97,000 crore. This indicates the total market value of the company's outstanding shares. 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 3.8 gigawatts, indicating upcoming projects and potential revenue generation.

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 290 per cent in 1 year and a whopping 1,740 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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