scorecardresearchSuzlon Energy has surged 19% just in September; Is it time to buy?

Suzlon Energy has surged 19% just in September; Is it time to buy?

Updated: 12 Sep 2022, 11:50 AM IST
TL;DR.
Suzlon Energy: The stock has given positive returns continuously for the last 6 weeks on heavy volumes and strong earnings. The stock is up 3.5 percent in today's deals as well.
The stock has given positive returns continuously for the last 6 weeks on heavy volumes and strong earnings. The stock is up 3.5 percent in today's deals as well.

The stock has given positive returns continuously for the last 6 weeks on heavy volumes and strong earnings. The stock is up 3.5 percent in today's deals as well.

Shares of Suzlon Energy have been on a rise, jumping over 19 percent just in September after a 24 percent rally in August. The stock has given positive returns continuously for the last 6 weeks on heavy volumes and strong earnings. The stock is up 3.5 percent in today's deals as well.

The stock has surged 53 percent in the last 1 year, however, it has lost around 4 percent in 2022 YTD.

Suzlon Energy became profitable within the last three years. Before 2020, the stock had lost nearly 90 percent of its investor wealth between 2017 and 2019. Since January 2020, the stock has surged over 400 percent.

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Suzlon Eenrgy stock price trend

Despite the recent rally, it is important to note that Suzlon energy is a smallcap stock which is a high-risk category which means that ir can fall as fast as it rose. Even a piece of small negative news regarding the firm can lead to massive losses for its investors. It is not suitable for investors with a risk-averse approach. Only high-risk investors should invest in such stocks and in very small weightage. Unless there is a really strong reason, investing in such stocks is not generally recommended to serious, long-term investors. Please consult your financial advisor before making any changes to your portfolio.

In the June quarter, Suzlon Energy posted a multi-fold rise in its net profit to 2,432.55 crore helped by exceptional gains. Its consolidated net profit of the company was 3.64 crore in the quarter ended June 30, 2021. Its total income rose 20 percent to 1,383.47 crore in the quarter from 1,148.61 crore a year ago.

Recently, Suzlon bagged an order to install 86 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each. The project is located in Kanakagiribad, Bagalkot, Karnataka, and is likely to be commissioned in 2024. Suzlon will supply the wind turbines (equipment supply) and execute the project including, erection and commissioning. It will also provide comprehensive operation and maintenance services.

Speaking on the order win, Ashwani Kumar, CEO, of Suzlon Group, said, "This is a third repeat order from Sembcorp. We are delighted to partner with them again and appreciate the confidence that the customer has demonstrated in our products and service offerings."

Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.

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First Published: 12 Sep 2022, 11:50 AM IST