Stock price of Suzlon Energy soared 5% to Rs 62.37 on Bombay Stock Exchange (BSE) on November 19, 2024, marking its third straight day of gains, after Morgan Stanley upgraded the company’s rating to ‘overweight’ from ‘equal-weight’. Notably, the brokerage firm’s target price revision from Rs 78 to Rs 71 did not deter Suzlon Energy’s stock surge. Morgan Stanley views Suzlon’s 45% stock correction as a buying opportunity, citing its robust business moat and strategic position in India’s energy transition.

Suzlon has a strong order book of 5.1GW, executable over two years, with a cautious approach focusing on orders with clear visibility.

Suzlon Energy: All Details

Morgan Stanley predicts Suzlon’s market share in India will increase to 35-40% by FY27, driven by a surge in wind additions expected to generate $31 billion in demand for wind OEMs between FY25-30. Suzlon’s quarterly revenue surged 48% to Rs 2,103 crore, up from Rs 1,421 crore in the corresponding period last year. The company’s net profit nearly doubled to Rs 200 crore from Rs 102 crore a year ago.

Suzlon’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 31.3% to Rs 293.7 crore, indicating improved profitability. Although EBITDA rose, margins narrowed to 13.97% from 15.74% in the same quarter last year. 52-week high level for Suzlon’s stock is Rs 86.04 apiece, whereas 52-week low level is 33.83. The stocks touched a 52-week high on September 12, 2024 on BSE, while the 52-week low came on December 21, 2023.

It is worth noting that despite recent volatility, Suzlon Energy shares have yielded a substantial 55% return in 2024.