Suzlon Energy share price rose 5% in early trade on Friday, extending gaining streak for the third straight session, as investors remained bullish on the renewable stock after its December quarter earnings beat estimates. The largecap stock has rallied nearly 16% in three days despite volatility in the broader market.

On Friday, Suzlon Energy shares opened 2.9% higher at ₹57 against the previous closing price of ₹55.39 on the BSE. Extending opening gains, the counter rose 5% to hit its upper circuit limit of ₹58.15 on the BSE, while the market capitalisation climbed to ₹79,360 crore. The shares of Suzlon Energy have been hitting upper circuit for the three consecutive sessions post its Q3 results.

At the current level, Suzlon Energy share price trades 32% lower than its 52-week high of ₹86.04 touched on September 12, 2024, while it has risen 64% from its 52-week low of ₹35.49 touched on March 14, 2024. In the last one year, the counter has added 27%, while it lost over 16% in six months. The renewable energy stock has lost nearly 11% so far in January.

Analysts turn bullish on strong Q3

Domestic brokerage house Nuvama has upgraded Suzlon Energy to ‘Buy’ from ‘Hold’, with a revised target price of ₹60 from ₹67 earlier. The robust order inflow at 800 giga watt (GW) and all-time high order book execution of 5.5 GW over 24 months gives positive indication about revenue visibility. “We expect SUEL to remain a key beneficiary of the rising mix of FDRE/RTC/Hybrid in GoI tenders. SUEL also remains a key player in C&I (two–thirds of OB), and benefits from a duopolistic market in EPC capabilities and maintains an overall market share of 30%-plus,” it says in a note.

JM Financial has also maintained ‘Buy’ rating on the stock with a price target of ₹80, saying that the pace of capacity addition at country level will continue to be a critical metric for monitoring moving forward. “With a strong order book, augmented manufacturing capacity, enhanced operational readiness - bolstered by new leadership at business groups and supply chain improvements and sufficient working capital, we believe that the company is well-positioned for considerable performance growth in the future.”

Suzlon has recorded highest-ever order book of 5,521 mega watt (MW) as on Jan’25 (2,290 MW in Q3 FY24) with a diversified mix (92% 3x MW series; 58% commercial and industrial (C&I) customers; 21% PSU customers; 81% non-EPC scope; spread across 7 states.

Recently, Suzlon signed India’s largest wind energy order of 1,166 MW from NTPC Green as it becomes eligible for bidding PSU tenders and has also made a bid for another 900 MW+ tender from NTPC Green, results for which are expected in next 30-45 days.

For the third quarter ended December 31, 2024, Suzlon Energy reported a 91% year-on-year surge in consolidated net profit at ₹387 crore from ₹203 crore in the same period last year. Total income also jumped by 91.3% to ₹3,002.36 crore as compared to ₹1,569.71 crore in Q3 FY24. The EBITDA more than doubled to ₹500 crore, while EBITDA margin stood at 16.8% in Q3.

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