Suzlon Energy Share Price Hits Upper Circuit After Strong Q3 Results, Bullish Outlook

Suzlon Energy Ltd.'s shares rose nearly 5% after reporting a surge in its third quarter net profit and getting a ratings upgrade from Nuvama. The brokerage firm upgraded Suzlon’s stock from 'hold' to 'buy', citing robust earnings and order book, and valuation comfort following recent price corrections.

Nuvama has set a target price of Rs 60 for Suzlon, implying a potential upside of 19% from its previous close. This target price is based on a 35 times multiple of Suzlon's earnings projection for fiscal 2027.

The brokerage's revised outlook incorporates improved execution in the current fiscal, increasing its expected capacity installation from 1.44 GW to 1.5 GW. Nuvama also pointed to the positive impact of Suzlon's acquisition of Renom and other operational improvements as key contributors to the company's performance.

Suzlon Energy reported a 90% increase in its consolidated net profit for the third quarter of the current financial year, surpassing analysts' expectations. The wind turbine manufacturer posted a net profit of Rs 386 crore, higher than the Rs 350 crore forecast by analysts, as per an exchange filing on Tuesday.

The company also saw a 106% increase in its Ebitda, which reached Rs 498.6 crore, compared to Rs 239.7 crore in the same quarter last year. This performance exceeded analysts' expectations of Rs 431 crore.

Additionally, Suzlon’s operating margin expanded by 136 basis points, rising to 16.79% from 15.43% in the previous year, beating the estimated margin of 15.1%.