Suzlon shares zoom 23% since Q1 results. Still time to ride the rally?
Suzlon Energy were locked in a 5% upper circuit at its new all-time high in Tuesday’s session at Rs 68.25 after rallying 23% since its Q1 results were announced earlier in the last week.
The company had reported a stellar growth of 200% year-on-year (YoY) in its consolidated net profit for the quarter ended June 2024 at Rs 302 crore while its revenue from operations in the reported quarter stood at Rs 2,016 crore versus Rs 1,348 crore reported in the year-ago period, an uptick of 50%.
Post the Q1 update, domestic brokerage firm JM Financial raised the stock’s target price to Rs 71 saying “We believe that gradual building of momentum for higher execution, healthy order book, more healthy bid pipeline, strengthening of balance sheet and the organization are driving the company for the next level of growth”.
Meanwhile, Geojit Financial Services had initiated coverage on Suzlon Energy with a target price of Rs 73 with a view of 12 months.
“Suzlon 2.0 is a de-levered, optimised, profit-making business which has done away with its troubled past and is looking at a vibrant landscape of opportunities in India and abroad,” said the coverage report by Geojit Financial Services.
Additionally, while commenting on the outlook for the stock, Kranthi Bathini, Equity Strategist at WealthMills Securities said “in terms of the price, it (Suzlon shares) looks around Rs 62, but in terms of the market capitalisation, the stock has gained. So, for the fresh entry, one need to wait, at 84,000 crores market cap, the potential upside
