Suzlon Energy Shares Jump 5% After Morgan Stanley Upgrade and Target Price Revision
Shares of Suzlon Energy surged by 5%, reaching Rs 62.37, after global brokerage firm Morgan Stanley upgraded the stock from 'Equal-weight' to 'Overweight'. As part of the upgrade, Morgan Stanley adjusted its target price for Suzlon to Rs 71, down from Rs 78, citing the recent sharp decline in the stock price as a buying opportunity.
The brokerage continues to view Suzlon as a key beneficiary of India's energy transition, supported by a strong business moat and a large 5.1GW order backlog to be executed over the next 24 months. The company has been selective in taking on orders with higher visibility in offtake. With reduced competitive intensity, Morgan Stanley expects Suzlon's market share to rise to 35-40% by FY27.
The firm also estimates that India's wind additions will drive 32GW ($31 billion) of orders for wind OEMs from FY25-30. In Q2 FY25, Suzlon Energy reported a 96% jump in its consolidated net profit at Rs 201 crore versus Rs 102 crore in the year-ago period. The company's revenue from operations during the quarter stood at Rs 2,093 crore, up 48% over Rs 1,417 crore reported in the corresponding quarter of the previous financial year.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the reported quarter was Rs 294 crore, up from Rs 225 crore in the same period last year, reflecting a 31% year-on-year increase. However, the EBITDA margin for Q2FY25 decreased to 14.1% from 15.9% in the previous year.
Suzlon's shares were trading 4.9% higher at Rs 62.3 on the BSE. Year-to-date, the stock has risen by 62%, and over the past two years, it has surged 670%, providing multi-bagger returns. The company currently boasts a market capitalization of Rs 85,111 crore.
