Suzlon Energy shares jump 5%, up 47% in a month

Business: Shares of Suzlon Energy rose 5 per cent to hit a multi-year high of Rs 80.36 on the NSE on August 12. This multibagger stock, which recently crossed the Rs 1 lakh crore market capitalisation mark, has delivered 47 per cent returns in the last month alone. It is now trading at its highest level since March 2010. Suzlon shares have surged for the fourth consecutive session after the global renewable energy solutions provider executed definitive agreements to acquire 76% stake in Renome Energy Services Private Limited (Renome) from Sanjay Ghodawat Group (SGG). The acquisition will take place in two stages. It is worth noting that Morgan Stanley has given an overweight rating on Suzlon, with a target price of Rs 73.4 per share, which the stock has already crossed. The international brokerage sees the acquisition of Renome Energy Services as a strategic move in the multibrand operations and maintenance services (OMS) sector. Meanwhile, brokerage firm Prabhudas Lilladher said, “With near-term stop loss maintained at ₹71, one can hold on to this stock, as it is showing huge upside potential and further gains can be expected.”

Should you buy?

JM Financial has retained its ‘buy’ rating on Suzlon stock, highlighting the company’s ability to leverage Renome to enter the 32GW non-Suzlon operations and maintenance services (OMS) market. This market, which includes an immediate opportunity of 10GW, is expanding as India targets 100 GW of wind power capacity by FY30. At 1:23 pm, shares of Suzlon Energy hit a 5 per cent upper circuit at ₹80.36 on the National Stock Exchange (NSE). This surge has pushed Suzlon’s market capitalisation to ₹1.1 lakh crore. So far this year, the stock has gained 108 per cent, far outpacing the Nifty 50’s gain of over 12 per cent during the same period. In the past one year, Suzlon shares have delivered a remarkable return of nearly 300 per cent, effectively quadrupling investors’ capital.