Suzlon Energy shares up 5%. Will positive dynamics continue?

Shares of Suzlon Energy rose nearly 5% on Tuesday to Rs 78.05 per share after the company announced it had received a large order for 1.17 GW from NTPC Green Energy.

The transaction brings Suzlon’s total order book to almost 5 GW, the highest ever. The order includes the installation of 370 wind turbine generators (WTG) by Suzlon in projects for NTPC Renewable Energy and Indian Oil NTPC Green Energy in Gujarat.

Following the deal, Morgan Stanley affirmed its overweight rating on Suzlon Energy, saying the transaction provides enhanced earnings visibility for fiscal years 2026 and 2027.

The brokerage has set a target price of Rs 73.4, which is close to the stock’s current trading levels.

Suzlon, which was earlier barred from bidding for public sector contracts due to its negative net worth, has signed a major contract with a public sector undertaking after a long hiatus.

Additionally, nearly 0.3% of Suzlon’s equity — equivalent to 3.7 crore shares — was exchanged in a block trade at Rs 77 per share, for a total deal value of Rs 272 crore. Suzlon’s share price opened with a gain of 4.8% at Rs 77.93.

Out of five analysts covering Suzlon Energy, three have rated it a “buy” while two suggest a “hold”.

ICICI Securities has set the highest target price at Rs 80 per share, reflecting growing optimism about Suzlon’s future growth.

It is worth noting that the wind energy market in India is expected to grow rapidly in the coming years, with hybrid renewable energy (RE) and 24/7 power solutions (RTC) projects gaining popularity.

Suzlon’s new WTG model, the S144, which boasts a hub height of 160 metres and can generate 40-43% more power than previous models, is key to harnessing this growth. The technology makes low-wind sites viable, especially as India moves towards fixed and dispatchable renewable energy (FDRE) tenders.

Analysts believe that with a cash surplus of Rs 1,197 crore, Suzlon is well-positioned to make timely capital expenditures, including investments in blade moulds and other technological improvements.

Analysts believe that if the company continues to benefit from the growth in the Indian wind energy sector, the stock could break through the current resistance levels and approach Rs 800.

(Disclaimer: The views, opinions, recommendations and suggestions expressed by the experts/brokers in this article are their own and do not reflect the views of India Today Group. It is advisable to consult a qualified broker or financial advisor before taking any actual investment or trading decisions.)