Saying the renewable energy solutions provider is much more robust after deleveraging and leaner after cutting fixed operating costs, Foreign brokerage Morgan Stanley has initiated coverage on Suzlon Energy Ltd with an 'overweight recommendation as per a credible report. Suzlon Energy 2.0 has strongly positioned itself to benefit from India's energy transition.
Shares of Suzlon Energy shares have increased by 15 percent in the last one month and 23 percent if we speak of year-to-date. Morgan Stanley's target suggests 23 percent potential upsurge with Friday's closing price standing at Rs 47.61. Furthermore, the foreign brokerage believes the market is not fully appreciating Suzlon Energy's growth potential as per the report.
Also, Suzlon Energy sees wind orders of 32 GW over the next five years. Morgan Stanley, as per CNBC TV18 stated that earnings for Suzlon Energy might grow at 57 percent with a compounded annual growth rate in financial year 2024-27.
ICICI Securities said FY24 was a real turnaround year for Suzlon Energy while upgrading its target price on the Suzlon Energy stock recently. This is said due to the company becoming net debt free, strong execution growth of 10 percent to 710 MW and order inflow of 3.1 GW in financial year 2024. JM Financial has maintained its 'Buy' rating on the stock and did not puddle with the target price.
"Suzlon has got back into shape after a tumultuous period over the last decade. Over the past three years, it has reduced its debt from Rs 12,000 crore in FY20 to nil in FY24 through various debt to equity conversions. With that, it has recently become net cash positive with a cash reserve of INR 11bn as of Mar’24, after a successful equity raise worth Rs 2,000 crore in Q2FY24 for debt reduction," highlighted ICICI Securities.
