Suzlon Energy Ltd. saw its stock price surge to a new yearly high of Rs. 35.95 on the National Stock Exchange (NSE) on Monday, marking an impressive five-day return of 17.48%. This notable increase was a direct response to the company’s second-quarter financial results for the fiscal year 2024, which revealed substantial year-on-year net profit growth from Rs. 57 crore to Rs. 102 crore.
On the same day, Suzlon Energy’s shares also reached an upper limit of Rs. 34.44 on the Bombay Stock Exchange (BSE), representing a 5% increase from its previous closing price of Rs. 32.80. The company’s market capitalization currently stands at Rs. 46,882.10 crore, with holdings distributed among promoters (13.29%), institutions (20.71%), and non-institutions (66%).
Despite reporting a net loss of Rs. 5.36 crore for Q2FY24 and a decrease in total income from Rs. 949.19 crore to Rs. 811.54 crore, Suzlon’s consolidated net profit saw a significant surge of 81.14% to Rs. 102.29 crore, with total income at Rs. 1,428.69 crore.
This surge in stock price can be attributed to a gap-up opening and higher trading volumes, reflecting a 5.31% gain in the renewable energy sector. Notably, there was a surge in delivery volume of 173.72% compared to the five-day average on November 3rd, indicating robust trading activity, with around 4.2 crore shares traded, in line with the sector’s performance.
JM Financial maintained its ‘Buy’ rating for Suzlon Energy, raising its target price to Rs. 37. This upward revision is driven by a healthy order inflow and an expanded product portfolio. The stock consistently traded above its moving averages, reflecting its strong performance.
It’s worth noting that the strong financial performance of Suzlon Energy may have implications for two major Indian banks. The State Bank of India and Bank of Baroda could potentially face higher Deferred Tax Assets (DTA) under the new tax regime, which may have an impact on their earnings.
