Suzlon Energy, Inox Wind shares down up to 30% from 52-week highs; is now a good time to buy?

livemint.com:

Suzlon Energy shares are currently trading at a 26% discount from their 52-week high of ₹50.6 per share, while Inox Wind shares are trading 30% lower than their one-year high of ₹648 per share. Recognising this correction in the stocks as a favorable buying opportunity, domestic brokerage firm ICICI Securities has upgraded its rating on these two stocks.

According to the brokerage, the company has undergone a remarkable transformation following a challenging decade. Within the past three years, the company has significantly reduced its debt, which stood at ₹120 billion in FY20, primarily through debt-to-equity conversions.

This has propelled Suzlon Energy to achieve a positive net cash position, boasting a cash reserve of ₹7 billion as of December 2023, aided by a successful equity raise of ₹20 billion in Q2 FY24 focused on debt reduction, it highlighted. Also Read: 11 power stocks including Adani Green Energy, NHPC gained between 20% and 110% in 3 months; check full list Additionally, it says that favorable shifts in regulatory policies, coupled with advancements in the business landscape, present promising prospects for the wind industry.

The government's decision to tender out a minimum of 10 GW of wind capacity annually, alongside growing demand from commercial and industrial sectors for uninterrupted power supply, sets a positive trajectory for Suzlon, the leading player in the wind turbine industry, as per the brokerage. As renewable energy (RE) projects evolve towards greater complexity, encompassing hybrid, round-the-clock (RTC), and firm day-ahead (FDRE) capabilities, wind energy is expected to remain integral to the RE generation landscape.