Suzlon Energy shares rose today by 3%, hitting a high of ₹76.09 on the BSE. This impressive rise takes the stock's year-to-date gains to a remarkable 95%, solidifying its place as one of the top shares to buy in the midcap space.
The surge comes after Suzlon Energy announced a key transaction involving its corporate office, generating significant interest among investors. If you are looking for a share to buy, read along to find out all the relevant information.
The deal behind the surge
The recent boost in Suzlon Energy shares is attributed to the company's execution of a conveyance deed with OE Business Park (OEBPPL) for the sale of its corporate office, known as 'One Earth Property.' Under the terms of the agreement, Suzlon Energy will lease back the property for up to five years, providing the company with both operational stability and liquidity from the sale.
The deal is valued at ₹440 crore, which includes ₹411.21 crore for the conveyance and ₹28.79 crore towards stamp duty and registration charges. This substantial transaction has bolstered investor confidence, contributing to Suzlon’s upward trajectory and making it a share to buy for investors seeking strong midcap stocks.
Impressive year-to-date gains
With a year-to-date gain of 95%, Suzlon Energy's stock has performed exceptionally well in 2024. In the past year alone, the stock has surged by a staggering 218%, making it one of the top performers in the midcap segment. This rise has caught the attention of both retail and institutional investors, positioning Suzlon as a share to buy for those looking to capitalise on the company's growth trajectory.
Despite its impressive rise, analysts are still optimistic about Suzlon's potential. JM Financial has set a target price of ₹72, which the stock has already exceeded. The current price of ₹76.09 reflects the market’s confidence in the company's future, especially after the recent transaction.
Midcap stocks on the rise
According to Kotak Institutional Equities, midcap stocks like Suzlon have benefited from rerating-driven price returns over the past 12 months. Many of these stocks are investment-related, such as those in capital goods, electricity, and real estate. Suzlon Energy fits into this category, with its valuation supported by its solid business model and growth prospects.
Kotak's report highlights that Suzlon Energy is a share to buy, especially in light of its consistent performance and strong market positioning. With the Nifty Midcap 150 Index rallying, Suzlon is among the 25 stocks contributing to 50% of the index's rise, making it a key player in this sector.
What's next for Suzlon Energy?
Despite the recent surge, Suzlon Energy has traded within the ₹75-80 range over the past two weeks, indicating some level of market consolidation. Analysts like Jigar S Patel from Anand Rathi suggest that investors adopt a cautious approach, waiting for the stock to test its key support zone around ₹72-73 before making any major decisions. This level could provide a solid foundation for future growth, making Suzlon Energy a share to buy once the stock confirms its support.
Is Suzlon Energy a share to buy?
Suzlon Energy's recent performance, backed by strategic business moves and a solid growth trajectory, makes it a compelling share to buy. With year-to-date gains of 95% and a promising outlook in the midcap space, Suzlon Energy is likely to continue attracting investors. However, a cautious approach is recommended, with attention to key support levels for optimal entry points.
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