Suzlon Market Cap Surges Past Rs 1 Lakh Crore; Stock Hits Upper Circuit

Third Consecutive Day of Gains for Suzlon Energy

Suzlon Energy Ltd., one of India’s leading wind turbine manufacturers, has achieved a significant milestone by crossing a market capitalization of Rs 1 lakh crore. The stock has been on a winning streak, gaining for the third consecutive day. On Friday, Suzlon’s shares surged by 5%, marking another impressive performance following a 5% gain on Wednesday and a 4.8% rise on Thursday. With this latest movement, the company’s market capitalization now stands at Rs 1.04 lakh crore.

Large Trades Signal Investor Confidence

Investor confidence in Suzlon is evident from the substantial trades that took place on Thursday. A total of 4.8 crore shares, representing 0.4% of the company’s total equity, exchanged hands in these transactions. The trades were valued at Rs 346 crore, with shares trading at an average price of Rs 72 per share. 

Strategic Acquisition Boosts Suzlon’s Growth Prospects

Earlier in the week, Suzlon announced the strategic acquisition of a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group. The deal, valued at Rs 660 crore, will be completed in two tranches. This acquisition is expected to enhance Suzlon’s service offerings and strengthen its position in the renewable energy sector. The move aligns with the company’s long-term strategy of expanding its footprint in the energy services domain.

A Rollercoaster Journey: From IPO to Recovery

Suzlon’s stock market journey has been nothing short of dramatic. The company made its debut on the stock market in late 2005 with an IPO priced at Rs 500. However, the stock faced several challenges over the years, plunging to a low of Rs 1.56 in 2020. Despite these setbacks, Suzlon staged a remarkable recovery, particularly in 2023 and continuing into this year. The stock has been on an upward trajectory for five consecutive years, with a 200% increase in 2023 alone. In 2024, Suzlon’s stock has already doubled in value, with a 10.4% gain recorded in August.

Strong Market Position and Future Prospects

Suzlon’s resurgence can be attributed to its strong market position and technical expertise in the wind turbine generator (WTG) business. The company commands a healthy market share of 30-35% in India, supported by a robust track record of project execution and cumulative installed capacity. As of May 29, 2024, Suzlon’s order book stood at approximately 3.88 GW, with projects scheduled for completion by fiscal 2026. Importantly, the company has also addressed its previous reliance on customer-backed financing to execute orders, which had previously hampered its growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.