Suzlon Energy shares rallied 5% and are locked in upper circuit at Rs 62.22 after the international brokerage firm Morgan Stanley raised its rating to “Overwieght” on the stock from “Equalwieght”. The upgrade is rating is primarily because Morgan Stanley expects Suzlon to improve market share going forward. The brokerage house said that the competitive intensity is lower due to which Morgan Stanley believes the company’s market share to improve to 35-40% by FY27.
Also, industry tailwinds to help Suzlon Energy. The brokerage firm expects India’s wind additions will drive 32GW of orders over the next five years for wind OEMs. Further, Morgan Stanley believes that the current fall in the stock price is a perfect opportunity to accumulate the stock.
Suzlon Energy in Q2
The company reported a jump of 96% on year in net profits rising to Rs 200.20 crore in Q2 FY25, compared to Rs 102.29 crore in the same quarter of the previous fiscal year. Its revenue from core operations rose 48% year-on-year to Rs 2,092.99 crore in Q2 FY25, against Rs 1,417.21 crore in the same period the previous year.
The company reported a net profit of Rs 302 crore, a three-fold growth on year in Q1 FY25 compared to Rs 101 crore posted in the corresponding quarter of the previous financial year. The company’s revenue from operations came in at Rs 2,016 crore, compared to Rs 1,348 crore reported in the year-ago period, an increase of 50% on year.
Suzlon Energy Vs Nifty 50
The stock of Suzlon Energy has risen 7% in the last five trading sessions. However, it has fallen almost 12% in the past one month. It has risen 41% in the last six months. The stock has given a return of 62% from year to date and more than 50% in the last one year.
To compare, the benchmark index, Nifty 50, has fallen 0.16% in the past five days. It has erased 4% of investors’ wealth in the last one month. However, it has given a return of 5.5% in the last six months. The index has risen a bit over 10% from year to date and 21% in the last one year.
» Read More
