Suzlon Energy shares in focus today. Here's why
Suzlon Energy said its representatives will attend Investor meets scheduled by JPMorgan on September 23 and Motilal Oswal Financial Services on September 26.
- Sep 9, 2024,
- Updated Sep 9, 2024 7:06 AM IST
Shares of Suzlon Energy Ltd are in focus today after the renewable energy solutions provider completed the acquisition of 51 per cent of the equity share capital of Renom Energy Services. With this, Renom Energy Services has now become a subsidiary of the company, Suzlon Energy told stock exchanges post market hours of Friday.
Besides, Suzlon Energy said its representatives will attend Investor meets scheduled by JPMorgan on September 23 and Motilal Oswal Financial Services on September26.
Suzlon Energy was recently in news after it sold its iconic corporate office, Suzlon One Earth, which analysts said was at a fairly-valued transaction. It is seen strengthening the company’s financial health and operational efficiency. As per the deal, the One Earth Property would be leased back to Suzlon Energy upon the completion of the sale, for a period of up to five years with and licensing and sub-leasing rights. With the company paying annual rent of about 12 per cent of the sale consideration against FY24 return on equity (ROE) of 28 per cent, JM Financial views the asset-light strategy as value accretive.
ICICI Securities believes Suzlon Energy would use the raised capital to increase its execution and capability in a bid to gather incremental orders. This, it said, is in line with its strategy to sell non-core assets, as stated in April 2022.
The orderbook of Suzlon Energy has increased to 4GW to record high; and the brokerage firm believes there is enough opportunity to add sizeable order inflow in FY25.
"Suzlon's current orderbook provides visibility of execution for next 2 years. Also, a large number of orders of ~1.5GW from public sector entities are yet to be finalised. We are baking in over 2GW of order inflow in FY25E and FY26E. Maintain ADD with a revised target price of Rs 80," it said.
JM Financial also feels that the shift away from owning such extensive office facilities and planned sub-leasing of the property may help Suzlon Energy in mobilising more working capital for enhanced execution.
"The transaction, valued within the current market range of Rs 7,500 to Rs 9,500 per square foot in Pune’s Hadapsar area, seems fairly priced with annual rent under the lease of . Rs 45-50 crore (JMFe)," JM Financial said.
Shares of Suzlon Energy Ltd are in focus today after the renewable energy solutions provider completed the acquisition of 51 per cent of the equity share capital of Renom Energy Services. With this, Renom Energy Services has now become a subsidiary of the company, Suzlon Energy told stock exchanges post market hours of Friday.
Besides, Suzlon Energy said its representatives will attend Investor meets scheduled by JPMorgan on September 23 and Motilal Oswal Financial Services on September26.
Suzlon Energy was recently in news after it sold its iconic corporate office, Suzlon One Earth, which analysts said was at a fairly-valued transaction. It is seen strengthening the company’s financial health and operational efficiency. As per the deal, the One Earth Property would be leased back to Suzlon Energy upon the completion of the sale, for a period of up to five years with and licensing and sub-leasing rights. With the company paying annual rent of about 12 per cent of the sale consideration against FY24 return on equity (ROE) of 28 per cent, JM Financial views the asset-light strategy as value accretive.
ICICI Securities believes Suzlon Energy would use the raised capital to increase its execution and capability in a bid to gather incremental orders. This, it said, is in line with its strategy to sell non-core assets, as stated in April 2022.
The orderbook of Suzlon Energy has increased to 4GW to record high; and the brokerage firm believes there is enough opportunity to add sizeable order inflow in FY25.
"Suzlon's current orderbook provides visibility of execution for next 2 years. Also, a large number of orders of ~1.5GW from public sector entities are yet to be finalised. We are baking in over 2GW of order inflow in FY25E and FY26E. Maintain ADD with a revised target price of Rs 80," it said.
JM Financial also feels that the shift away from owning such extensive office facilities and planned sub-leasing of the property may help Suzlon Energy in mobilising more working capital for enhanced execution.
"The transaction, valued within the current market range of Rs 7,500 to Rs 9,500 per square foot in Pune’s Hadapsar area, seems fairly priced with annual rent under the lease of . Rs 45-50 crore (JMFe)," JM Financial said.