Suzlon Stock Above Rs. 30, Good to Buy?

Suzlon Energy's stock price has gone above ₹30, the highest since April 2015. Is now a good time to buy?

Renewable energy stocks, fueled by government clean energy initiatives, are gaining investor interest. Suzlon Energy stands out with its remarkable share price surge.

One year ago, Suzlon Energy's stock traded at ₹7.45 per share. Today, it has surged by an incredible 315.5%, reaching ₹30, the highest since April 2015.

This impressive rally started in April and maintained positive returns monthly until September. May led the way with a remarkable 41.6% surge, followed by June at 30%.

Suzlon Energy's remarkable performance pushed its market cap beyond ₹42,000 crore, ranking it as the 165th most valuable Indian company.

Despite this rally, it's worth noting that the stock is still 92.66% below its all-time high of ₹422 per share in January 2008.

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This surge is because of wind power acquisitions, strong finances, and positive evaluations from brokerage firms on its order book and financial recovery.

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JM Financial highlights Suzlon Energy's strong position in the wind sector, driven by reduced debt, lower interest costs, and an improved financial profile, enhancing its growth potential.

In August, Suzlon Energy secured a significant 201.6 MW order from O2 Power Private Limited, marking the largest for Suzlon's new 3 MW series turbines.

Furthermore, the company's order book has seen substantial growth, increasing from 652 MW in Q4 FY23 to 1,582 MW in Q1 FY24, ensuring good revenue visibility for the next two years.

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Suzlon Energy's remarkable journey mirrors the broader transformation of India's energy landscape, which is poised for a bright and sustainable future in the realm of renewable energy.

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Investors who are looking to invest in Suzlon are advised to do proper research and analysis before investing and then make their decision accordingly.