Suzlon Energy shares: Suzlon Energy Ltd shares grabbed attention in Tuesday’s trading session following a significant order win and the recent resignation of an Independent Director, who expressed concerns about corporate governance standards and transparency at the company. Despite this development, analysts have mostly upheld a ‘Buy’ rating on the stock, citing recent robust order wins. They also highlighted that the independent director himself expressed satisfaction with the financial and operational turnaround of the company, as indicated in his resignation letter.
It’s important to note that the letter does not imply any financial or legal wrongdoing. The management is actively taking measures to enhance transparency and improve the process of information sharing. With this, the management is confident in addressing the specific concerns regarding corporate governance and aims to strengthen governance practices and disclosures. ICICI Securities reaffirmed its BUY rating on Suzlon, setting a target price of Rs 60, as mentioned in their note.
It aims to further enhance corporate governance as an ongoing initiative. The company has also implemented various measures to enhance transparency recently and is optimistic about addressing specific corporate governance issues.
ICICI Securities highlighted, “The outlook for the wind industry remains positive over the medium to long term, with an expected opportunity of 10GW in wind projects to be floated between FY23 and FY27E. Additionally, considering the increasing complexity of renewable energy (RE) projects, transitioning from simple solar or wind to hybrid, real-time connectivity (RTC), and now flexible dynamic reactive energy (FDRE), we believe wind will continue to play a crucial role in RE generation going forward.”
JM Financial stated that the management’s strong commitment to maintaining good corporate governance, as emphasized during the post-resignation conference call, along with favorable macroeconomic factors, improving execution pace, and a healthy board composition, has reinforced their confidence. JM Financial maintained a ‘Buy’ rating with a target price of Rs 54, based on a 30 times FY26E EPS.
Nuvama Institutional Equities expressed its confidence in Suzlon Energy Ltd by maintaining its ‘Buy’ thesis, supported by the structural upturn in the wind sector and the company’s financial turnaround. It recommended a target price of Rs 53 for Suzlon Energy.
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