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Suzlon Energy, a prominent player in the renewable energy sector, witnessed a significant surge in its share price, hitting a new 52-week high of ₹86 on Wednesday's BSE trading. This remarkable rally marked the third consecutive session of gains, with the stock climbing by 5 per cent on each occasion. The positive investor sentiment driving this surge can be attributed to a favorable analyst rating from Morgan Stanley, which assigned an 'overweight' rating to the company.
Morgan Stanley's bullish outlook stems from Suzlon's recent acquisition of a substantial contract from NTPC Green Energy, the renewable energy arm of state-owned NTPC. This contract, valued at 1,166 MW, marks a significant milestone for Suzlon, signifying its return to large-scale projects following a period of ineligibility due to its negative net worth. The analyst firm anticipates that this order will significantly bolster Suzlon's earnings outlook for the fiscal years 2026 and 2027.
The contract entails Suzlon installing 370 S144 wind turbines (WTGs), each boasting a rated capacity of 3.15 MW. These turbines will generate electricity for an estimated 3 million households, making this project the largest wind energy order in India. The project will be executed at three distinct locations in Gujarat. As per the agreement, Suzlon will not only supply the wind turbines but also manage their erection and commissioning, as well as provide ongoing operations and maintenance services after the project becomes operational.
Beyond the NTPC contract, Suzlon's recent decision to sell and lease back its prime real estate, One Earth Property in Pune, for a period of five years at a price of ₹440 crore also contributed to the bullish sentiment surrounding the company. This development prompted domestic brokerage ICICI Securities to increase its target price for Suzlon's stock from ₹70 to ₹80. The market capitalization of the green energy company reached a notable ₹1.14 lakh crore on the BSE.
Looking at the broader picture, Suzlon Energy's stock has experienced a remarkable surge, with its value rising by 266 per cent over the past year and an astonishing 827 per cent over the last two years. This remarkable growth trajectory underscores the company's commitment to expanding its presence in the renewable energy sector, which is witnessing significant global growth and a transition away from fossil fuels.
Source: Suzlon Energy shares hit 52-week high, continues to gain for third consecutive session; here’s why