Suzlon Energy’s stock experienced a 5% upper circuit on November 14, 2024, recovering from a sharp 22% drop over the previous five sessions. The stock closed at ₹56.78, with a market capitalization of ₹77,483 crore. Despite this recovery, the stock has seen significant volatility in November, but it has gained 47.56% year-to-date. Its 52-week high is ₹86.04, and the low is ₹33.83.
The outlook for Suzlon is mixed, with contrasting views from analysts. JM Financial maintains a BUY rating on the stock, with a target price of ₹81. They highlight Suzlon’s largest-ever order book of 5,131 MW as of October 2024, including a 1,166 MW order from NTPC Green Energy, marking India’s largest wind energy order. JM Financial also points to the government’s strong commitment to renewable energy, including the target of 500 GW non-fossil fuel capacity by 2030, with significant wind energy contributions. They believe Suzlon is well-positioned to capture a substantial share of this growing market, with a healthy bid pipeline and an improving balance sheet.
On the other hand, Ventura Securities recommends a SELL, with a target price of ₹50, suggesting a 27.5% downside from the current price of ₹69. They acknowledge Suzlon’s strong order book and its dominant position in the wind energy market but argue that the stock is overvalued. Ventura believes that while Suzlon is well-positioned for the next 3-4 years, the current stock price does not reflect the risks related to its cash flow generation, execution challenges, and overall market conditions.
Adding to the uncertainty, Suzlon experienced a leadership change with the resignation of Ishwar Chand Mangal, the CEO of New Business, on November 8, 2024. He left to explore new challenges and opportunities outside the company.
In summary, while Suzlon is seen as a key player in India’s renewable energy sector, the stock’s current valuation has raised concerns among some analysts. The contrasting recommendations reflect the tension between Suzlon’s strong market position and its potentially overinflated stock price.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice. Please conduct your own research or consult with a financial advisor before making any investment decisions.
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