Shares of Suzlon Energy hit the upper circuit of 5% with a sharp rise of 5% on November 23, taking its closing price to Rs 39.20 on NSE. Its shares had fallen by 12% in the last three trading days, but this news gave a new direction to the shares.
Late last week, a rumor spread in the market that Suzlon Energy would be acquired by the Adani Group. Ta held Suzlon shares behind him. Rupee. Every day on August 29. The bullish trend had started from the closing price of 8.10.
In the last five trading sessions, Suzlon Energy shares have seen a rise of more than 26 percent.
In the last one month, shares of Suzlon Energy have registered a rise of 37 percent. On Monday, it reached the upper circuit on BSE with a gain of 20 percent. Suzlon shares have increased by 32 percent last week.
However, the SBICAP trustees who gave huge loans to Suzlon Energy Group revealed that the SBICAP trustees had inadvertently mentioned the name of Adani Green instead of Suzlon Energy as the target company. Which was converted into a rumor by some sections of the market that Adani Group is buying the stake of Suzlon Energy.
The reality is that SBICAP trustee has increased the stake in Suzlon, not Adani Group.
SBICAP Trustee has increased its stake in Suzlon Energy to 9.92 percent. In the announcement made by the SBICAP Trustee in this regard, Adani Green was mentioned as the target company. There should be a proper investigation whether it was a printing error or a scam. Due to which many investors had shown aggressive buying in Suzlon Energy.
In a presentation at the JM Financial India Conference 2023 on November 21, Suzlon Energy Management said that apart from in-built O&M services, they are also focusing on non-EPC orders. Suzlon Energy, one of the 65 companies, also reported that their share in the C&I segment has increased from 55% in the June quarter to 64% in the September quarter.
Brokerage Analysis Earlier this month, JM Financial had given Suzlon Energy a “buy” rating with a target price of Rs 37. The reasons behind this were healthy order flow, better execution visibility and better product portfolio.
The company’s order book and service business The company’s order book as of September 30, 2023, stands at 1.6 GW, of which 62% is for 3.x MW turbines. The company’s services business is performing well with 14.3GW capacity and annual growth is expected to be 3-4GW in FY24E and 5-6GW in FY25E.
There has been improvement in the balance sheet of the company. The company’s balance sheet recorded a positive consolidated net worth of Rs 3400 crore in the September quarter.
Reduction in debt: After the QIP offer, the company is left with a debt of only Rs 120 crore. Suzlon Energy has a net cash balance of around Rs 600 crore, while the gross cash balance is around Rs 720 crore. Finance cost has also been reduced by 55%.