Multibagger wind-energy stock under Rs 50 and FIIs & DIIs increase stake: Company Secures new orders of 402 MW from Juniper Green Energy for the 3 MW series

The stock gave multibagger returns of 400 per cent in 1 year and a whopping 825 per cent in 3 years.

Today, the Indian benchmark indices started the day in green with the BSE Sensex Index up 0.16 per cent while the NSE Nifty-50 Index is up 0.02 per cent. On the border market, the BSE Mid-Cap Index is down by 0.18 per cent and the BSE Small-Cap Index is up by 0.15 per cent. Though the market was trading mixed, one multibagger stock was locked in a 5 per cent upper circuit to Rs 46.23 per share from its previous closing of Rs 44.03 per share. The stock’s 52-week high is Rs 50.72 and its 52-week low is Rs 9.15. The stock gave multibagger returns of 400 per cent in 1 year and a whopping 825 per cent in 3 years.

The buzzing stock name is SUZLON ENERGY LTD.

Suzlon, India's leading renewable energy company, has secured new orders totalling 402 MW from Juniper Green Energy. This project will involve installing 134 wind turbines, each with a capacity of 3 MW, at the Fatehgarh site in Rajasthan. The electricity generated will be supplied under both Firm and Dispatchable Renewable Energy (FDRE) Hybrid and Merchant models. With a capacity of 402 MW, this project is expected to provide clean electricity to approximately 3,31,000 households and reduce carbon dioxide emissions by roughly 1.3 million tonnes annually. Notably, this is a repeat order from Juniper Green Energy for Suzlon's proven 3 MW S144-140m wind turbines. In addition to supplying the turbines, Suzlon will also be responsible for the entire project lifecycle, including foundation construction, erection, commissioning, and post-commissioning operation and maintenance services.

Suzlon Energy Ltd, a leading renewable energy powerhouse with a market cap exceeding Rs 62,000 crore, cements its dominance by joining the prestigious ranks of both the BSE Mid-cap and Power Indices.

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The company announced a group reorganization to streamline operations and improve transparency. This involves merging its wholly-owned subsidiary, Suzlon Global Services Limited (SGSL), into itself, creating a single entity focused solely on wind and related businesses. The plan also includes merging Suzlon Energy Mauritius (SELM) with Suzlon Energy Limited (SEL) to reduce organizational layers and compliance costs. Financially, the restructuring strengthens SEL's standalone balance sheet, making it more competitive in public sector tenders. It also eliminates inter-company balances and improves working capital. Additionally, reclassifying reserves into retained earnings will boost SEL's net worth, enabling dividend payouts and meeting PSU criteria. The entire restructuring process, including obtaining approvals, is expected to take 6-10 months. This move highlights Suzlon's commitment to strategic financial management, allowing them to reinvest in potential areas and offer Wind Turbine Generation & Operations and Maintenance (WTG-O&M) services under one entity, ultimately aiming to enhance customer service.

In March 2024, Foreign institutional investors (FIIs) bought over 171 crore shares and increased their stake to 19.57 per cent and Domestic Institutional Investors (DIIs) increased their stake to 6.30 per cent compared to 7.64 per cent and 5.55 per cent respectively in March 2023. Currently, promoters own a 13.28 per cent stake, FIIs own a 19.57 per cent stake, DIIs own a 6.30 per cent stake and the public owns a 60.85 per cent stake in the company.  

With a strong order book exceeding 3,157 MW at the end of 2023, the company's recent successful placement has led to a debt-free financial position and a significant net cash surplus of Rs 600 crore, indicating exceptional financial health and a promising future.

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