Multibagger Power Sector Penny Stock Hits 10% Upper Circuit, New 52-Week High

Shares of Suzlon Energy have been witnessing an upward trend for the last 6-days. Today, Suzlon Energy shares traded new-52-week high and also hit 10% upper circuit. The multibagger stock offered 108% return in just last 3-months. It declared its consolidated net profit at Rs 320 crore for three months ended March quarter. ICICI Securities recommended buy rating to Suzlon Energy stock with target price of Rs 22 per share and potential gain of 31%. Check details below:

Suzlon Energy Stock Outlook & Return: Current market price of Suzlon Energy share is Rs 16.86 per share with intraday gain of 9.98%. The stock opened at 15.70 per share, touched day's high of Rs 16.86/share (also its 52-week high price) and day's low of Rs 15.70 apiece in trade on July 3, 2023. The stock witnessed 20% return in last 1-week, gained 53% in last 1-month, delivered 171% return in last 1-year, and 211% return in last 3-years. The company has a market capitalisation of Rs 20,916.27 crore.

Suzlon Energy Q4 Results: It announced its consolidated net profit at Rs 320 crore for the three months ended March quarter amid declining expenses. It had announced its consolidated net loss at Rs 205.52 crore in the year-ago period, according to its BSE filing. Its consolidated net profit for FY23 declared at Rs 2852 crore as against a net loss of Rs 258 crore in FY22. The company announced its total income for March quarter at Rs 1700 crore, down 31% against Rs 2478 crore declared in preceding quarter. Meanwhile, total income for financial year 2023 declared at Rs 5990 crore, down 9%.

ICICI Securities Recommends Buy Call: ICICI Securities in its brokerage report dated June 29, 2023 assigned buy call to Suzlon Energy shares with target price of Rs 22 per share. If you buy Suzlon Energy shares now at current market price of Rs 16.85 per share , you can fetch potential upside of 31%.

According to the analyst, "We expect a revenue CAGR of 37% to ~Rs112bn over FY23-FY25E, EBITDA CAGR of 37% to ~Rs16bn with an EBITDA margin of 14%, and PAT at ~Rs11bn in FY25E. We initiate coverage on the stock with a BUY recommendation. Our P/E based target price is Rs22, valuing the business at 24x FY25E EPS of Rs0.9/share.

About Suzlon Energy: Founded in 1995, Suzlon is one of the leading global renewable energy solution providers. Over the past two decades, Suzlon has installed over 20 GW of wind energy in 17 countries across six continents. The Suzlon Group comprises of Suzlon Energy Limited and its various subsidiaries. The Group's vision for growth is driven by the concept of sustainable development. In recent years, Suzlon has developed strong competencies in solar power too and plans to offer Wind-Solar hybrid solutions. Its global wind installations alone help in reducing more than ~51.35 million tonnes of CO2 emissions every year, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.