Shares of renewable energy solution provider Suzlon Energy Ltd surged as much as 18 percent in Wednesday's trade to hit a fresh 52-week high of Rs 14.50 apiece, taking the three-day gains to 29 percent. Suzlon Energy shares have been in an uptrend for three days in a row amid optimism over improvement in its balance sheet and industry tailwinds.

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The stock was trading 18.44 percent higher at Rs 14.45 apiece on NSE during late noon deals. It has surged 69 percent in the last one month, while the stock has risen 95 percent in the past one year.

In terms of technicals, Suzlon Energy's day relative strength index RSI (14) is at 77.9. The RSI above 70 is considered overbought, according to data from Trendlyne. Moving average convergence or divergence (MACD, or MAC-D) is at 0.6, which is above its center and signal Line, this is a bullish indicator.

"The company has an order book of 1500 megawatt and is expected to report a revenue of Rs 7500-8000 crore in FY24, considering it is able to execute 850-900 MW. With the debt being reduced significantly and on the EBIT margins of FY23, the company will be in a much more promising place in the next 12 months. The stock continues to be a part of our GARP smallcase and so far has delivered close to 50 percent returns," said Diwakar Rana, Senior Research Analyst at Prudent Equity.

The Pune-headquartered company's group CEO JP Chalasani said the firm's cumulative orders at 1,542 megawatts are the highest since 2019. These orders, as per Chalasani, included the order book of 652 megawatt as on March 31, 2023, plus orders secured subsequently of 890 megawatts. Suzlon's priority going forward is to pursue quality orders with a higher value and better margins, he said.

"Our focus remains on execution and building our order book. Our OMS business continues to do well. It has over 16 gigawatts of renewable capacity under maintenance globally, out of which close to 14 gigawatt is in India. With a positive sectoral outlook and strong fundamentals, we at Suzlon are now well equipped to leverage the market opportunity arising from energy transition," Chalasani has said.

The company has recently announced that it has achieved the milestone of 20 GW installed wind turbine capacity worldwide. "Suzlon Group has crossed the 20GW wind energy installations milestone through 12,467 wind turbines installed across 17 countries, spanning six continents, solidifying Suzlon's position as a significant player in the global wind energy landscape," according to the company statement.

On industry tailwinds, Emkay Global in a research note said the government will likely invite annual wind capacity bids of 10 GW across eight windy states, single stage closed bids and ISTS waiver for 25 years, which offer a visible trajectory of the wind pipeline.​

The brokerage noted that Suzlon has become the first Indian wind energy company to reach 20GW of worldwide wind energy installation and has a 33 per cent cumulative wind energy market share in India.

However, the brokerage does not rate Suzlon Energy.

In the March 2023 quarter (Q4FY23), Suzlon Energy posted a consolidated net profit of Rs 320 crore. The company had posted a consolidated net loss of Rs 205.52 crore in the year-ago period. Its consolidated net profit for FY23 stood at Rs 2,852 crore against a net loss of Rs 258 crore in FY22.

Meanwhile, its total income for the quarter under review was down 31 percent to Rs 1,700 crore as compared to Rs 2,478 crore in the year-ago period. Total income for FY23 was down 9 percent at Rs 5,990 crore.

First Published:Jun 7, 2023 3:46 PM IST