Mumbai, 30th January 2024: Suzlon Energy Ltd, a leading wind turbine manufacturer in India, has delivered exceptional returns to its investors over the last one year.
An investment of ₹100,000 made on 31st January 2023, when Suzlon share price closed at Rs. 9.80, would be worth a whopping nearly ₹450,000 today as the stock closed at Rs. 44 on 30th January 2024. This translates to a stellar return of over 350% in just one year.
Suzlon Energy saw turbulent times over the last decade but seems to have finally turned the corner since last year. The company reported strong financial performance in the latest September 2023 quarter results with total revenue of ₹1,421 crore and net profit of ₹102 crore. Its order book also continues to grow steadily.
According to market analysts, Suzlon benefitted from increased focus on renewable energy, especially wind power, globally to reduce carbon emissions.
India plans to meet 50% of its energy from renewable sources by 2030 which offers a huge growth runway for wind energy companies. The stock markets have recognized these positive triggers and re-rated Suzlon stock significantly.
Suzlon share price which was languishing around Rs. 7-8 range for several years started its upward march from around March 2023. It gained further momentum post Q1FY23 results in August 2023 which showed early signs of turnaround.
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On 31st January 2023, the scrip closed at Rs. 9.80 which offered an attractive investment opportunity. Over the last one year, it has surged a mindboggling 350% to ₹44 per share as of today’s close on 30th January 2024.
Not just in the last one year, Suzlon stock has delivered towering returns to investors who showed conviction even during tough times. An investment of ₹1,00,000 made 10 years back at Rs. 19 per share would have grown to over Rs. 2 crores now at the current market price.
Going forward, with strong industry tailwinds and company’s improving financial performance, analysts expect the Suzlon stock rally to potentially sustain.
However, some consolidation or minor corrections cannot be ruled out after the sharp run-up last year. But for long-term investors, Suzlon Energy still offers an exciting investment case as India aims to tap its massive renewable energy potential.