16-Nov-2023
2 mins read
Suzlon Energy’s Recent Market Performance
Suzlon Energy’s shares have been on an upward trajectory, hitting a significant milestone with a 52-week high of Rs 40.50 on the BSE, marking a 4.81% increase. Over the span of four days, the stock has shown consistent growth, accumulating an 8.52% gain. This surge in stock value coincides with the recent announcement of its inclusion in MSCI’s Global Standard index.
Impact of MSCI Inclusion
The move by MSCI to include Suzlon Energy in its Global Standard index aligns with market expectations. Analyst estimates from Nuvama suggest an anticipated $289 million influx in passive inflows due to this inclusion. This substantial figure positions Suzlon Energy as the recipient of the second-highest inflows attributed to the MSCI balancing, following IndusInd Bank’s estimated $355 million influx.
The effective date for the MSCI rejig is slated for November 30, with projections indicating a potential addition of $1.5 billion in passive inflows to India as a whole.
Sustained Market Performance and Financials
Suzlon Energy has showcased remarkable market resilience, reflecting a notable 44% increase in the last month and an astounding 392% surge in the past six months. Despite mutual fund sell-offs in October, which amounted to 13.36 crore Suzlon Energy shares valued at Rs 410 crore, the company’s stock continued to gain momentum. This selling resulted in a reduction of the stake held by mutual funds in the renewable energy solutions provider, from 62.89 crore shares in September to 49.53 crore shares by the end of October.
Financial Outlook and Strategic Focus
Suzlon Energy reported a substantial 78% YoY surge in Q2 profits, reaching Rs 102.29 crore compared to Rs 57.43 crore in the same quarter of the previous year. However, despite this positive development, the company experienced a marginal 1% decline in sales, totalling Rs 1,417.21 crore for the quarter.
Looking forward, CFO Himanshu Mody emphasized the company’s commitment to delivering the existing 1,600 MW of confirmed orders in a timely manner. Mody highlighted Suzlon Energy’s strategic focus on executing orders profitably over the upcoming quarters, aiming to be selective in pursuing orders that align with the company’s margin profile.
In conclusion, Suzlon Energy’s recent market performance, bolstered by its inclusion in the MSCI Global Standard index, signals promising prospects for the company, with a strategic emphasis on profitable execution and selective order acquisition.