Here’s why Suzlon share price has jumped 68% in the last one month

Renewable power company Suzlon Energy’s share price  has been having a bumper time in the markets off late. Notably, shares of the Pune-based clean energy solutions provider have rallied 68% in the last month. Similarly, over the past year the Suzlon Energy share price has soared close to 92% over the past year.

So, what is causing this sharp rally in the Suzlon Energy share price? Has the company finally left its share underperformance days for good and is ready for growth? Is it just a relief rally or has the company’s fundamentals received a boost? Let’s try and decode!

Suzlon Energy share price: Reasons for rally

Strong results: One of the primary reasons that can be attributed to the recent rise in Suzlon share price is its solid results for the Jan - Mar ‘23 period.

Although the income from operations witnessed a yearly decline of 35.4% to Rs 1600 crores, it is at the net profit level that the company scored big.

The company reported a net profit of Rs 280 crores for the Jan - Mar ‘23 period. This marked a stark improvement from the previous year’s loss of Rs 204 crores in the same period.

Record installations: Being primarily a wind turbine player, the company has had a significant presence in the space. This fact was further reinforced after it hit a major milestone recently.

Notably, Suzlon announced that the company became the first Indian wind energy company to reach 20 GW of worldwide Wind  Energy installations. These installations include 12,647 wind turbines spanning 17 countries.

Meanwhile, the company also highlighted its prowess in the Indian wind energy space as it remarked that it had a 33% share of India’s cumulative wind energy installations.

Consequently, such operational tailwinds can be attributed as a driving force behind the recent rally in the Suzlon Energy share price.

Solid order wins: Another reason for Suzlon’s share price increase can be the massive recent order win from power generation and distribution company, Torrent Power.

The company received an order for 100 wind turbines from the company having a total capacity of 300 MW.
 

Meanwhile, it also received a 204 MW order for 68 turbines from Serentica Renewables too. Serentica Renewables is a decarbonisation platform that seeks to accelerate the energy transition for energy‐intensive industries. 

Additionally, in May, the company received an order from Vibrant Energy for 33 wind turbine generators having a total capacity of 99 MW.

As a result of these substantial order wins too, the Suzlon Energy share price has received a boost in recent times too.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.