Suzlon Energy shares climb 4% after large order win. Key details

Shares of Sulzon Energy Ltd, which were bucking the otherwise weak market trend, climbed 4 per cent on Friday after the renewable energy solutions provider said it has 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.

The stock settled at Rs 22.38, up 4.14 per cent.

Suzlon Energy said it will supply the wind turbines (equipment supply) and execute the project including erection and commissioning. Suzlon Energy will also provide operation and maintenance services post‐commissioning, the company said.

Vice Chairman of Suzlon Group Girish Tanti said: "With an extremely conducive policy environment this order from Teq Green Power XI Private Limited is a testament of India Inc’s commitment to building a sustainable India. The Suzlon 3 MW series is the next stage evolution of our proven technology, customized for the Indian wind regime and 3.15 MW is one of the largest wind turbines in the country today.”

Chief Executive Officer JP Chalasani said: "With increasing commitment to renewables and rising demand, it is heartening to see more customers joining the Suzlon family. We believe that our 3 MW series will be a true game changer for the sector to accelerate and scale up wind energy installations in the country in line with our national targets of 500 GW non‐fossil fuel installations by 2030.”

JM Financial has initiated coverage on Suzlon Energy shares with a 'Buy' rating and a September 2024 target of Rs 30 per shares, based on a 25 times September 2025 earnings per share (EPS), citing industry tailwinds, a deleveraged balance sheet and a robust order book. It 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.

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