Suzlon’s share price jumped close to 5% on Wednesday morning to hit a new 52-week high of ₹40.50.
What Happened: The surge comes today as the energy major was included in the MSCI Global Standard Index. Suzlon along with eight other stocks — APL Apollo, IndusInd Bank, Macrotech Developers, Paytm, Persistent, Polycab, Tata Communications & Tata Motors DVR — was included in the list. The global index provider made the announcement earlier today.
The inclusion of the Wind Energy giant could mean significant inflows. According to a note from Nuvama Alternative and Quantitative Research, the inclusion is expected to bring potential inflows worth $289 million ( around ₹2,400 crore) into the stock. IIFL Alternative’s note estimates potential inflows of $241 million (₹2,000 crore) into Suzlon Energy’s stock.
See Also: Is Suzlon A Good Buy?
Earlier this month, the company posted its results for the September quarter. Net profits reached ₹102.29 crore, marking a growth of over 81% from the ₹56.47 crore recorded in the corresponding quarter last year. The wind turbine manufacturer’s revenue remained flat at approximately ₹1,417 crore, compared to the ₹1,430 crore reported in the same period the previous year.
Suzlon Energy highlighted its attainment of a net cash position of ₹599 crores as of September 2023, marking a turnaround from a net debt of ₹1,180 crores reported on March 31.
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Price Action: Suzlon’s share price was up 4.79% to trade at ₹40.50 shortly after market open on Wednesday.
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