Sulzon Energy shares gain for 3rd day; stock up in 8 of last 10 sessions. Here's why
Suzlon Energy: The renewable energy solutions provider recently won a 201.6 MW order from O2 Power Private Limited. Suzlon Energy said the project will be commissioned in 2025.
- Aug 29, 2023,
- Updated Aug 29, 2023 9:45 AM IST
Shares of Sulzon Energy on Tuesday climbed for the third straight day to hit a fresh 52-week high, thanks to recent order wins and an initiation report on the stock by JM Financial. The stock climbed 5 per cent to hit a high of Rs 24.65 on BSE. This was in addition to a 4.96 per cent rise on Monday and 4.41 per cent on Friday. In fact, in the last 10 sessions, the scrip has risen in eight, with the stock delivering 29 per cent return in the last one month.
The renewable energy solutions provider recently won a 201.6 MW order from O2 Power Private Limited. Suzlon Energy said will install 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each for the 201.6 MW wind power project. The project is expected to be commissioned in 2025.
Besides, Suzlon bagged an order for the development of a 31.5 MW wind power project for Integrum Energy Infrastructure. Suzlon sad it would install 15 units of their S120–140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each in Maharashtra and Karnataka. The project is expected to be commissioned in May 2024, it added. The group, however, didn't disclose the value of the said project.
Adding the momentum is the recent coverage initiation on Suzlon Energy by JM Financial Ltd with a 'Buy' rating and a September 2024 target of Rs 30 per shares. The brokerage cited industry tailwinds, a deleveraged balance sheet and a robust order book behind its buy rating on the stock. JM Financial sees a strong pick-up in the company’s performance going forward.
Moving past the painful period, Suzlon Energy continues to have a 30-35 per cent market share in the domestic market driven by technology superiority and reliable O&M services, JM Financial said adding that the growing order book with a better-margin product-mix gives revenue visibility over the next 2 years.
"We expect Suzlon to exceed 2.5-3GW of annual installations in the near to mid-term as the company is best placed to benefit from industry tailwinds," the domestic brokerage said.
Suzlon Energy had to undergo restructuring exercise on account of unfulfilment of its debt obligations in the past. However, it has refinanced its existing debt and converted its entire outstanding optionally convertible debentures (OCDs) and compulsorily Cconvertible preferencesShares (CCPS) during last one year to bring down the total debt.
"Suzlon Energy has completed rights issue of Rs 1,200 crore and utilised Rs 900 crore to prepay its o/s debt obligations. It recently completed a Rs 2,000 crore QIP in August, the proceeds of which will be utilised towards repayment of debt (Rs 1500 crore) and fulfilling capex requirement. With reduction in debt, lower interest cost and better financial risk profile, the performance of the company is poised for significant improvement," it said.
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Shares of Sulzon Energy on Tuesday climbed for the third straight day to hit a fresh 52-week high, thanks to recent order wins and an initiation report on the stock by JM Financial. The stock climbed 5 per cent to hit a high of Rs 24.65 on BSE. This was in addition to a 4.96 per cent rise on Monday and 4.41 per cent on Friday. In fact, in the last 10 sessions, the scrip has risen in eight, with the stock delivering 29 per cent return in the last one month.
The renewable energy solutions provider recently won a 201.6 MW order from O2 Power Private Limited. Suzlon Energy said will install 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each for the 201.6 MW wind power project. The project is expected to be commissioned in 2025.
Besides, Suzlon bagged an order for the development of a 31.5 MW wind power project for Integrum Energy Infrastructure. Suzlon sad it would install 15 units of their S120–140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each in Maharashtra and Karnataka. The project is expected to be commissioned in May 2024, it added. The group, however, didn't disclose the value of the said project.
Adding the momentum is the recent coverage initiation on Suzlon Energy by JM Financial Ltd with a 'Buy' rating and a September 2024 target of Rs 30 per shares. The brokerage cited industry tailwinds, a deleveraged balance sheet and a robust order book behind its buy rating on the stock. JM Financial sees a strong pick-up in the company’s performance going forward.
Moving past the painful period, Suzlon Energy continues to have a 30-35 per cent market share in the domestic market driven by technology superiority and reliable O&M services, JM Financial said adding that the growing order book with a better-margin product-mix gives revenue visibility over the next 2 years.
"We expect Suzlon to exceed 2.5-3GW of annual installations in the near to mid-term as the company is best placed to benefit from industry tailwinds," the domestic brokerage said.
Suzlon Energy had to undergo restructuring exercise on account of unfulfilment of its debt obligations in the past. However, it has refinanced its existing debt and converted its entire outstanding optionally convertible debentures (OCDs) and compulsorily Cconvertible preferencesShares (CCPS) during last one year to bring down the total debt.
"Suzlon Energy has completed rights issue of Rs 1,200 crore and utilised Rs 900 crore to prepay its o/s debt obligations. It recently completed a Rs 2,000 crore QIP in August, the proceeds of which will be utilised towards repayment of debt (Rs 1500 crore) and fulfilling capex requirement. With reduction in debt, lower interest cost and better financial risk profile, the performance of the company is poised for significant improvement," it said.
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