Suzlon Energy shares hit the upper circuit, topping Rs 50; m-cap approaches Rs 70,000 crore

Suzlon Energy shares: Shares of Suzlon Energy Ltd hit an upper circuit during Thursday’s trading session. The multi-bagger stock once again surged past the Rs 50 mark in early trade and managed to remain above this level, even as it partially gave up its gains later in the session.

Shares of Suzlon Energy were locked at the upper circuit limit of 5 percent, reaching Rs 51.34 on Thursday, bringing its total market capitalization close to Rs 70,000 crore. Despite partially giving up gains in the early session, the stock had settled at Rs 48.90 in the last trading session on Wednesday.

The shares of Suzlon Energy are very close to the Rs 52.19 52-week high that was reached on June 4, 2024. The stock has soared over 285 percent from its 52-week low of Rs 13.28 recorded a year ago. So far in 2024, the stock has risen nearly 35 percent and is up 18 percent in the last month alone.

Suzlon Energy is among three dozen stocks where mutual funds purchased more than 1 crore equity shares in May. Interestingly, the stock has delivered double-digit returns to investors. As of May 2024, mutual funds held stakes in the company worth Rs 2,172 crore.

Suzlon Energy

The momentum in Suzlon Energy is driven by government policies that have enhanced the appeal of renewable energy companies as hot investment themes on Dalal Street, thanks to the central government’s push for green energy.

The government’s goal to achieve 500 GW of renewable energy generation by 2030 has created a positive market outlook for the industry. Reports suggest that India’s renewable energy sector is set to attract investments exceeding Rs 20.8 lakh crore. Recently, Suzlon Energy has been garnering significant attention.

Last week, Suzlon Energy announced the appointment of Khaitan & Co, a prominent law firm in India, to assess the company’s corporate governance practices following the resignation of Marc Desaedeleer, one of its independent directors earlier this month.

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This week, the company disclosed that its Vice Chairman, Girish Tanti, has been elected as the Chair of Global Wind Energy Council India. In April, he was appointed Vice-Chair of GWEC, as stated by the industry body.

Domestic brokerage firms are largely optimistic about the stock. ICICI Securities has a buy rating on Suzlon Energy with a target price of Rs 60, while JM Financial and Nuvama Institutional Equities also recommend buying the stock with target prices of Rs 54 and Rs 53, respectively.