19 Nov , 2024 By : Debdeep Gupta
Suzlon's market share in India is expected to improve to 35-40 percent by FY27, according to Morgan Stanley, which also forecasts India’s wind additions to generate 32GW of demand worth $31 billion for wind OEMs between FY25 and FY30.
Suzlon Energy shares surged 5 percent to hit the upper circuit limit of Rs 62.22 in early trade on November 19, marking a third consecutive day of gains, following Morgan Stanley's upgrade to an 'overweight' rating from 'equal-weight'. This rally comes even as the brokerage trimmed its target price to Rs 71 from Rs 78.
Morgan Stanley highlighted the stock's recent steep correction of 45 percent from its peak as a credible opportunity for accumulation, citing Suzlon’s strong business moat and its position as a key beneficiary of India's energy transition. The company boasts a robust 5.1GW order backlog executable over the next two years, with a prudent focus on orders with higher offtake visibility.
Suzlon's market share in India is expected to improve to 35-40 percent by FY27, according to Morgan Stanley, which also forecasts India’s wind additions to generate 32GW of demand worth $31 billion for wind OEMs between FY25 and FY30.
Suzlon’s revenue for the quarter rose 48 percent year-on-year to Rs 2,103 crore, compared to Rs 1,421 crore in the same period last year. Net profit nearly doubled to Rs 200 crore from Rs 102 crore a year ago.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew 31.3 percent to Rs 293.7 crore. However, EBITDA margins dipped slightly to 13.97 percent from 15.74 percent in the year-ago quarter.
Despite the correction, Suzlon Energy shares have given a return of 55 percent since the start of the year.
0 Comment