Global brokerage firm Morgan Stanley, which had recently initiated coverage on Suzlon Energy, maintains an ‘Overweight’ rating on the counter, with a target price of ₹58.5 per share.
“Plant to date has produced nearly 12 GW Nacelle out of the company’s 20.7 GW installed asset base. The plant has a capacity to produce 2.5 GW Of turbines per year Nacelle & Hub Forms 65 per cent of the cost of equipment,” Morgan Stanley said in its latest note to clients.
Earlier on Thursday, a block deal took place in the stock, as 3.7 crore shares changed hands in the trade. The number of shares traded amount to 0.3% of the company’s total equity.
The total transaction value for Suzlon’s block deal stood at ₹179 crore, according to data available on the exchanges.
Suzlon shares have surged for three months in a row. The stock is up 6.5% this month, after having risen 15% in May and 3% in April. The stock had climbed 20% in January before having corrected in February and March.
On a year-to-date basis, the stock has risen 36% so far. This will be the fifth straight year of positive returns for Suzlon if it manages to achieve this by the end of the year. The stock has delivered positive annual returns since 2020.
During Suzlon’s March quarter earnings call, the management was quizzed about whether the company would consider paying dividends to shareholders, now that they have a net cash balance sheet.
Responding to a query, CFO Himanshu Mody said that the company has a business plan which is set to be achieved in financial year 2025, post which such a proposal could be considered.
“I know all shareholders, love dividend. So, I mean, I cannot answer that question right now. I think let us, you’ve seen, we’ve taken certain initiatives of, merging our 100 per cent subsidiary with the parent SGSL (Suzlon Global Services Ltd) with SEL (Suzlon Energy). So, therefore, as we said earlier, there is a business plan that we have set out ourselves to achieve in FY’25. So, I think, this is probably a best discussion held around May of 2025,” he said.
All five analysts that track Suzlon Energy have a ‘Buy’ recommendation on the stock, with domestic broking firm ICICI Securities projecting the highest price target for the stock at ₹60 per share.
