Suzlon advances 0.77% in morning trade; stock up nearly 40% in 1 month on order book strength

Mumbai, April 28: Shares of Suzlon Energy traded up on Tuesday, after opening flat at Rs 56.93. The stock was trading at Rs 57.37 in morning trade, up Rs 0.44 or 0.77% against the previous close of Rs 56.93 on the NSE. Suzlon Energy touched an intraday high of Rs 57.60 early during morning trade before coming off some to around Rs 57.10, bouncing back to trade around Rs 57.35–57.40 levels as of 11.30 am on Tuesday while the broader market trades with a negative bias.

During the last seven trading sessions, Suzlon Energy has returned 8.04%, substantially outperforming the Nifty Midcap 50 index that posted a marginal loss during this period. Suzlon Energy picked up from Rs 53 on April 21 to Rs 54.70 on April 22, before correcting to Rs 53.85 on April 23 and Rs 53.90 on April 24, before powering through two consecutive sessions on April 25–27 to close at Rs 56.93 on Tuesday. Suzlon Energy’s one-month return is at a whopping 40.54%, vastly outperforming the Nifty Midcap 50’s gain of 10.69% during the said period.

Stellar Order Book

The PSU-controlled wind turbine manufacturer currently has a record order book of projects in pipeline. Suzlon Energy’s order book image depicts sizeable pending capacity across various states and customer segments affirming the company’s position as India’s leading wind turbine company. Seeing some sharp recovery over the last few sessions, the sell-side predominance in Tuesday’s order book data — Rs 64.66 crore sell quantity versus Rs 35.34 crore buy quantity at total traded quantities of over 2.38 crore shares — indicates profit booking today following the recent strong run. Suzlon Energy is witnessing rising FII and DII stakes over the last few sessions, indicating institutional investor interest in the stock. While short-term traders could witness volatility driven by profit booking after such a sharp rally, this provides a healthy medium-term outlook for demand.

Positive Developments That Kept Suzlon on a Roll:

ArcelorMittal order: Suzlon bagged wind energy business worth 248.85 MW from ArcelorMittal, the world’s sixth-largest steel producer, to set up a hybrid power project in Gujarat. This is one of the largest orders that the company has won from a single customer recently.

100 MW GAIL order: Suzlon Energies bagged another wind project worth 100 MW from GAIL (India) Limited during March this year. Suzlon Energies will install 47 S120 turbines across Maharashtra for GAIL (India) Limited, adding to its list of PSU customers.

Suzlon approved ESOP allotment of Rs 1.11 crore to employees; share price moves 0.9%: The Securities Issue Committee of Suzlon Energy on April 13 this year, approved the allotment of 6,57,000 fully paid-up equity shares of the company to employees under the ESOP 2022 at exercise prices of Rs 5 and Rs 24 per share. The ESOP allotment will bring in Rs 1.11 crore to the company’s coffers. Post this issuance, the company’s total paid-up capital will be Rs 2,743 crore divided into 1,371.53 crore equity shares of Rs 2 each face value.

Management appointments: Suzlon appointed Paulo Soares as President — Europe, and promoted JP Chelani to the Group Executive Council. The new appointments show Suzlon’s intent to expand its offshore footprint internationally.

Source: 

• https://www.nseindia.com/get-quote/equity/SUZLON/Suzlon-Energy-Limited