Suzlon Energy shares hit 5% upper circuit limit on high volumes despite downsize of 2018 order

Shares of Suzlon Energy Ltd hit their upper circuit limit amid heavy volumes, even as the renewable energy solutions provider said the 285 MW wind power project that it bagged in May 2018 from Avikiran Solar India Private Limited has been downsized by the two parties due to disruption of the global supply chain.  

On BSE, Suzlon Energy hit its 5 per cent upper circuit limit at Rs 25.89. A total of 5.35 crore shares changed hands on the counter so far against a two-week average of 3.42 crore, amounting to Rs 139.16 crore. On NSE, a total of Rs 180 crore worth shares changed hands on the counter.

Suzlon said it had on May 30, 2018, announced various order wins including that of 285 MW wind power project under SECI 4 bid located in Kutch, Gujarat from Avikiran Solar India Private Limited. "This is to inform that due to devastating impact of the COVID19 global pandemic and the resultant disruption of the global supply chain, the parties have decided to downsize the project limiting to 168 MW," Suzlon Energy said in a BSE filing

The stock has been in news after bagging multiple deals of late. Suzlon Energy recently won a 201.6 MW order from O2 Power Private Limited, wherein it 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 Energy 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.

Also read: Stocks to watch on August 30, 2023: CMS Info Systems, Tanla Platforms, LTIMindtree, Vedanta, others

Also read: Rishabh Instruments IPO, Super Rare Blue Moon, Raksha Bandhan in Top News on August 30: Nifty, Bank Nifty, Crude oil outlook, Asia Cup kicks off

Also read: Raksha Bandhan Holiday 2023: Is Indian stock market open today? Check details of BSE, NSE trading holidays