Suzlon Energy Ltd.'s shares reached a new yearly high of Rs. 35.95 on the National Stock Exchange (NSE) on Monday, marking a significant five-day return of 17.48%. This surge followed the company's second quarter financial results for fiscal year 2024, which revealed a year-on-year net profit growth from Rs. 57 crore to Rs. 102 crore.
On the same day, Suzlon Energy's shares also hit an upper limit of Rs. 34.44 on the Bombay Stock Exchange (BSE), up by 5% from its previous close of Rs. 32.80. The company's market capitalization stands at Rs. 46882.10 crore, with holdings divided between promoters (13.29%), institutions (20.71%), and non-institutions (66%).
Despite reporting a Q2FY24 net loss of Rs. 5.36 crore and a decrease in total income from Rs. 949.19 crore to Rs. 811.54 crore, Suzlon's consolidated net profit rose by a significant 81.14% to Rs. 102.29 crore with total income at Rs. 1,428.69 crore.
The stock opened at this price due to a gap-up opening and higher trade volumes, reflecting the renewable energy sector's gain of 5.31%. A delivery volume surge of 173.72% against the five-day average on November 3rd indicated robust trading activity of around 4.2 crore shares, aligning with the sector's performance.
JM Financial maintained its 'Buy' rating for Suzlon Energy, increasing its target price to Rs. 37. This revision was driven by a healthy order inflow and an enhanced product portfolio. The stock consistently traded above its moving averages, indicating strong performance.
However, the company's financials may impact two major Indian banks. The State Bank of India and Bank of Baroda could face higher Deferred Tax Assets (DTA) under the new tax regime, potentially impacting their earnings.
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