Suzlon Energy hits 5% upper circuit on Morgan Stanley upgrade and strong Q2 earnings

Suzlon Energy's shares surged 5 per cent to deed the precocious circuit astatine Rs 62.37 successful Tuesday’s league pursuing an upgrade from Morgan Stanley. The planetary brokerage revised the banal standing to 'Overweight' from 'Equal-weight,' citing a buying accidental aft the caller correction. The people terms was adjusted to Rs 71, down from Rs 78 earlier.  

Morgan Stanley highlighted Suzlon's robust concern moat and its presumption arsenic a cardinal subordinate successful India's vigor transition. The company’s beardown bid backlog of 5.1 GW, valued astatine Rs 20,000 crore, is expected to beryllium executed implicit the adjacent 2 years. The brokerage projects Suzlon’s marketplace stock successful the upwind vigor conception to emergence to 35-40 per cent by FY27, supported by a important pipeline of 32 GW of upwind vigor orders estimated betwixt FY25 and FY30.  

The affirmative sentiment was further fueled by Suzlon’s stellar Q2 FY25 results. The institution reported a consolidated nett net of Rs 201 crore, marking a crisp 96 per cent summation from Rs 102 crore successful Q2 FY24. Revenue from operations besides roseate 48 per cent YoY to Rs 2,093 crore, portion EBITDA grew 31 per cent to Rs 294 crore. However, the EBITDA borderline dipped to 14.1 per cent from 15.9 per cent a twelvemonth ago.  

Year-to-date, Suzlon’s banal has rallied 62 per cent and has delivered multibagger returns of 670 per cent implicit the past 2 years. The company’s marketplace capitalization present stands astatine Rs 85,111 crore.  

Analysts property Suzlon’s beardown show to its selective bid strategy and reduced competitory strength successful the upwind vigor sector. With India’s accelerating vigor transition, the institution remains well-positioned for growth.  

At 10:23 AM, Suzlon's shares were trading 4.9 per cent higher astatine Rs 62.30 connected the BSE. The caller developments awesome sustained capitalist assurance successful the stock's semipermanent potential.