The rise in Suzlon’s share price has been the comeback story of the year. The stock has surged up over 250% in the last six months reaching several new record highs. However, what would happen if the stock is not able to complete its comeback story?
The Investment: If you invest ₹10,000 in Suzlon Today, you will be able to buy around 343 shares of the company with the current market price being around ₹29.10. Now if the stock slumps back to its 52-week low of ₹6.60 that it hit on Oct. 13, 2022, the value of those 343 shares would reduce to around ₹2,263.
Background: The comeback at the bourses is backed by the company’s financial performance. The energy major’s revenues surged from ₹3,000 crore in FY20 to ₹5,940 crore in FY23. Furthermore, the company has returned to positive territory in terms of Profit After Tax (PAT) before exceptional items.
Additionally, Suzlon has been effectively managing its debt. The company’s gross debt decreased from ₹1,905 crore at the end of the March quarter of FY23 to ₹1,806 crore in the June quarter of FY24. The net debt, as of the same period, stood at ₹1,223 crore.
The company’s has also seen a steady flow of orders. It bagged a new order to develop 29.4 megawatts of wind-installed capacity for a 100-megawatt co-located wind-solar hybrid project by BrightNight, a global renewable power producer late last month.
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Price Action: Suzlon’s share price was down 1.02% to trade at 29.20 in the mid-market hours of trading on Friday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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