Suzlon Energy stock hits 5% upper circuit as Morgan Stanley sees 17% upside

livemint.com:

Suzlon Energy hit their 5 percent upper circuit at ₹49.99 on Monday after global brokerage house Morgan Stanley initiated coverage on the stock with an ‘overweight’ rating and a target price of ₹58.5, implying an upside of 17 percent.This comes after the wind energy firm got bullish views from 2 other brokerages - Nuvama and Anand Rathi. Both had ‘buy’ calls on the stock with Nuvama's target at ₹53 and Anand Rathi's target at ₹58.Morgan Stanley noted that Suzlon 2.0 is well-positioned to benefit from India's energy transition.

The company has become much stronger after deleveraging and leaner by reducing fixed operating costs.Suzlon achieved debt-free status by raising funds through various methods, including a QIP and a rights issue. By the end of the March quarter, the company had a net cash balance of ₹1,100 crore.The brokerage believes the market has yet to fully recognise Suzlon's growth potential, anticipating wind orders worth 32 GW, or nearly $31 billion, over the next five years.It expects Suzlon's earnings to grow at a compounded annual growth rate (CAGR) of 57 percent over the next three years, from financial year 2024 to 2027.Post today's rally, the stock is now less than a percent away from its 52-week high of ₹50.72, hit on February 2, 2024.

Meanwhile, it has soared over 360 percent from its 52-week low of ₹10.86, hit on June 2, 2023.Suzlon Energy shares have already surged over 333 percent in the last one year and 31 percent in 2024 YTD. The stock rose 14.5 percent in May after a 3 percent gain in April.

However, it shed 10.7 percent in March and 1.5 percent in February. Before that, it advanced over 20 percent in January this year.Meanwhile, Nuvama, in its note, said that Suzlon Energy is the market