Shares of Suzlon Energy surged 5 percent to reach a multi-year high of ₹80.36 on the NSE on August 12. This multibagger stock, which recently surpassed a market capitalization of ₹1 lakh crore, has delivered a 47 percent return in just the past month. It is now trading at its highest level since March 2010.
Suzlon shares have risen for the fourth consecutive session following the global renewable energy solutions provider’s execution of definitive agreements to acquire a 76% stake in Renom Energy Services Private Limited (Renom) from the Sanjay Ghodawat Group (SGG). The acquisition will take place in two tranches.
It’s worth noting that Morgan Stanley has given overweight rating on Suzlon, with a target price of ₹73.4 per share, which the stock has already surpassed. The international brokerage views the acquisition of Renom Energy Services as a strategic move into the multibrand Operations and Maintenance Services (OMS) sector.
Meanwhile, brokerage firm Prabhudas Lilladher said, “With maintaining the near-term stop loss of ₹71, one can hold on to the stock with much upside potential visible and further gains can be anticipated.”
Should you buy?
JM Financial has upheld its ‘buy’ rating on Suzlon stock, highlighting the company’s potential to leverage Renom to tap into the 32GW non-Suzlon Operations and Maintenance Services (OMS) market. This market, which includes a 10GW immediate opportunity, is expanding as India targets 100 GW of wind energy capacity by FY30.
At 1:23 pm, Suzlon Energy shares hit the 5 percent upper circuit at ₹80.36 on the National Stock Exchange (NSE). This surge has propelled Suzlon’s market capitalization to ₹1.1 lakh crore.
So far this year, the stock has climbed 108 percent, far outpacing the Nifty 50’s gain of over 12 percent during the same period. Over the past year, Suzlon’s shares have delivered remarkable returns of approximately 300 percent, effectively quadrupling investors’ capital.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of 24Onlive . We advise investors to check with certified experts before making any investment decision.
