Suzlon Energy's shares have been on a remarkable upward trajectory, hitting a 52-week high. The company's stock surged to ₹86 on the Bombay Stock Exchange (BSE) during Wednesday's trading session, marking a significant milestone for Suzlon in the share market. Investors keen on share market investment have closely followed this rally.
The renewable energy firm witnessed heavy trading activity, with around 13.94 crore shares being traded on the National Stock Exchange (NSE), translating to a total traded value of ₹1,173.4 crore. This bullish trend has cemented Suzlon's standing in the market, with many looking to buy shares online to capitalise on the company's impressive growth.
Reasons behind Suzlon Energy's stock surge
Several factors have contributed to Suzlon Energy's recent stock surge, sparking increased interest from investors in share market investment. Firstly, the company secured a major contract from NTPC Green Energy, a renewable energy division of the state-owned NTPC. This 1,166 MW contract is the largest wind energy order in India, signifying Suzlon's comeback to large-scale projects after facing ineligibility due to a negative net worth. As part of this project, Suzlon will install 370 S144 wind turbines (WTGs), each with a capacity of 3.15 MW, which will generate power for approximately 3 million households. The project will be carried out across three locations in Gujarat.
Suzlon's ability to win such substantial contracts has significantly boosted investor confidence, leading to an increase in share prices. For investors who want to buy shares online, Suzlon's promising future prospects have made it a stock to watch in the renewable energy sector.
Financial recovery and stock performance
Suzlon's financial recovery over the past two years has been another critical factor behind its stock price increase. The company has undergone extensive debt restructuring, significantly reducing its debt levels and improving liquidity. As a result, Suzlon's stock has surged by 266% over the past year and 827% over the last two years, making it a notable performer in the share market investment space.
The company's prime real estate asset, One Earth Property in Pune, has also been a key driver of its financial recovery. Suzlon agreed to sell and lease back this property for ₹440 crore, allowing the company to strengthen its balance sheet while maintaining its operational base. Domestic brokerage ICICI Securities responded positively to this development, raising its target price for the stock from ₹70 to ₹80.
Significant trading activity and market sentiment
The rally in Suzlon Energy shares has been accompanied by significant trading activity. During Wednesday's trading session, 12.935 million shares were traded on the BSE, with a high turnover of ₹110 crore. The stock's beta of 0.9 indicates low volatility over the past year, making it an attractive option for investors seeking stability in share market investment.
Suzlon's ability to attract large institutional investors, such as Morgan Stanley, has further fuelled the positive sentiment around its stock. The company's leadership in the renewable energy sector and its strong financial recovery have made it a focal point for investors seeking to buy shares online and diversify their portfolios with exposure to green energy stocks.
Conclusion
Suzlon Energy's recent stock performance, marked by a 52-week high and a 7% rise over three consecutive days, reflects the company's strong position in the renewable energy sector and its ability to secure large-scale contracts. The surge in Suzlon's shares has been driven by several factors, including the NTPC Green Energy contract, favourable government policies, and the company's financial recovery efforts.
For investors focused on share market investment, Suzlon's promising growth prospects, coupled with its leadership in the wind energy sector, make it an attractive option.
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