Suzlon Energy, a prominent global renewable energy solutions provider, has recently achieved a significant milestone by entering the elite group of companies with a market capitalization of over Rs 1 trillion. This achievement comes on the back of a strong rally in the stock price of the company, with shares of Suzlon Energy hitting an over 14-year high at Rs 76.39 on the BSE.
The surge in market capitalization can be attributed to various factors such as the allotment of equity shares in rights issues, conversion of debentures, and bonds into equity shares. This has propelled Suzlon Energy to new heights, with its market cap reaching Rs 1.03 trillion. The company’s stock price has witnessed a remarkable increase in the past three months, soaring by 90% and skyrocketing by 802% in the past 15 months.
Suzlon Energy is a part of the Suzlon Group, a leading renewable energy solutions provider with approximately 20.8 GW of wind energy capacity installed across 17 countries. The group, which includes subsidiaries like Suzlon Energy, is also India’s top wind energy service company, boasting a service portfolio of over 14.8 GW in wind energy assets. With around 6 GW of installed capacity outside India, Suzlon offers a wide range of wind turbines, including the 2 MW and 3 MW series.
In a strategic move to further strengthen its position in the market, Suzlon Group recently acquired a 76% stake in Renom Energy Services Private Limited, a major Multi Brand Operations and Maintenance service provider in India. This acquisition aligns with the company’s vision to lead the renewable energy sector comprehensively and capitalize on the exponential growth opportunities in India’s renewable energy industry.
The future looks promising for Suzlon Energy, as industry experts predict a surge in India’s wind energy capacity, with the government planning to conduct exclusive wind tenders annually until 2027. Analysts at Geojit Financial Services anticipate Suzlon to deliver 2.1 GW of Wind turbine generators in FY26E, marking a significant growth trajectory for the company.
Despite the positive outlook, it is essential to consider the risks associated with the industry. However, brokerage firms remain optimistic about Suzlon’s growth prospects, expecting a revenue CAGR of 53% and an EPS growth of 66% CAGR in the FY24-26E period. The company’s strong order book, healthy bid pipeline, and strategic initiatives are driving it towards the next level of growth.
In conclusion, Suzlon Energy’s remarkable journey to a Rs 1 trillion market capitalization reflects its strong position in the renewable energy sector. With a focus on innovation, strategic acquisitions, and market expansion, Suzlon is well-positioned to capitalize on the growing demand for renewable energy solutions in India and beyond.