Suzlon Energy shares gain 4% on winning repeat order from KP Group in Gujarat

Snapping three session losing streak, shares of Suzlon Energy gained over 4% in intraday trade on Thursday after the country’s largest wind turbine manufacturer bagged a repeat order from the KP Group in Gujarat. In the last three sessions, Suzlon shares lost nearly 8% as investors booked profit at higher levels.

Early today, Suzlon Energy shares opened lower at ₹34.65 against the previous closing price of ₹35.61 on the BSE. The renewable energy stock declined as much as 5% to hit a low of ₹33.83 in early trade, but soon gained momentum after the company informed exchanges that it secured a new order.

Paring early losses, the counter gained 4.3% to hit an intraday high of ₹37.15, while the market capitalisation climbed to ₹50,085 crore. Meanwhile, the stock has rebounded nearly 9% from day’s low levels.

Suzlon Energy shares have seen robust growth this year, driven by turnaround in its financial position, operational excellence, and favourable sectoral tailwinds. The share price of the company has surged 530% in the eight months, rebounding from its 52-week low of ₹6.96 touched on March 28, 2023 to hit a 52-week high of ₹44 on November 17, 2023. In the last one year, Suzlon shares have given 262% returns to its shareholders, while it zoomed 245% in the calendar year 2023. The largecap stock has risen 164% in six months, while it lost over 6% in a month.

In an exchange filing today, the renewable energy solutions provider said it won a new order for the development of a 193.2 megawatt (MW) wind power project for The KP Group in Gujarat. “This will be part of wind-solar hybrid and STU's (State Transmission Utility) tariff-based project for increasing renewable energy contribution in the state of Gujarat,” it says in a release.

The release further states that Suzlon will supply 92 units of their S120-2.1 MW wind turbine generators (WTGs) with a 140m Hybrid Lattice Tubular (HLT) tower at Vagra and Vilayat in Bharuch district of Gujarat. A project of this size can provide electricity to nearly 1.25 lakh households and curb around 4.96 lakh tonnes of carbon dioxide emissions per year.

Suzlon will execute the project with a scope of supply, supervision, and commissioning. Additionally, it will also undertake post-commissioning operation and maintenance services, the release notes.

Girish Tanti, Vice Chairman, Suzlon Group said, "With an extremely conducive policy environment offered by Gujarat, this order from The KP Group is a testament of India Inc's commitment to building a sustainable India. It is heartening to see the private sector step up to the task with such enthusiasm, especially through the C&I segment that will help MSME to become globally competitive by switching to green power."

Last week, the company had secured another order for the development of a 100.8 MW wind power project for a leading global utility company. As part of the deal, Suzlon will install 32 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each in Gujarat.

Suzlon is one of India’s leading wind energy service companies with a service portfolio of over 14.3 GW of wind energy assets. The Group has around 6 GW of installed capacity outside India. It offers a comprehensive product portfolio led by the 2 MW and 3 MW series of wind turbines.

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