Shares of Suzlon Energy jumped 12.95 per cent to hit a high of Rs 13.78 on BSE. The stock has jumped 25.38 per cent in the three trading sessions. Shares of Suzlon Energy soared 13 per cent in Wednesday's trade to hit fresh 52-week high, taking their three-day rise to 25 per cent. Suzlon shares have been rising amid optimism over improvement in its balance sheet and industry tailwinds.
In its earnings call, group CEO JP Chalasani said his company's cumulative orders at 1,542 megawatts are the highest since 2019. These orders, he said, included the order book of 652 megawatt as on March 31, 2023, plus orders secured subsequently of 890 megawatts. Suzlon's priority going forward is to pursue quality orders with a higher value and better margins, he said.
"Our focus remains on execution and building our order book. Our OMS business continues to do well. It has over 16 gigawatts of renewable capacity under maintenance globally, out of which close to 14 gigawatt is in India. With a positive sectoral outlook and strong fundamentals, we at Suzlon are now well equipped to leverage the market opportunity arising from energy transition," Chalasani said recently.
Shares of Suzlon Energy jumped 12.95 per cent to hit a high of Rs 13.78 on BSE. The stock has jumped 25.38 per cent in the three trading sessions.
Chalasani noted that the recent important announcements of discontinuation of e-reverse bidding and resorting to close bidding, coupled with the state-specific bidding for all eight states with the pooled tariff, would help Sulzon Energy get back to the pre-FY 2017 level of capacity. Chalasani noted that the FY24 wind bid plan 2.5 gigawatt each by SECI, NTPC, NHPC and SJVN that is making it to 10 gigawatts.
"The initiatives like ISTS waiver, the extension for COD of projects until June 2025, will again boost the C&I segment mainly. Wind repowering potential of 25 gigawatts and the Green Hydrogen mission targets, the concepts like RPO and RGO obligations which further boost RE sector in a big way," he said. RE stands for renewable energy.
On industry tailwinds, Emkay Global in a note said the government of India is expected to invite annual wind capacity bids of 10 GW across eight windy states, single stage closed bids and ISTS waiver for 25 years, which offer a visible trajectory of the wind pipeline.
It noted that Suzlon has become the first Indian wind energy company to reach 20GW of worldwide wind energy installation and has a 33 per cent cumulative wind energy market share in India.
"The improvement in balance sheet is on the back of the company’s operation and maintenance service (OMS) and wind turbine generator (WTG) arms, along with industry tailwinds, restructuring, refinancing and a successful rights issue. The OMS unit caters to cumulative capacity of 16 GW (14 GW under SGSL in India) and contributed 31 per cent to overall FY23 revenue with reported Ebit (OMS) of Rs 680 crore for the year. The WTG segment supplied 664 MW capacity in FY23 and Rs100 crore Ebitda, with Ebitda margin of 2.7 per cent (1.6 GW in FY17, with Ebitda margin of 19 per cent). Suzlon’s portfolio ranges from 225 kW to the newly-launched 3MW-S414 series, which contributes 51 per cent of the current order book (1,542MW)," it noted in a report titled "Winds of change," it said.
The brokerage, however, does not rate Suzlon Energy.