Why Are Suzlon Shares Back In Green Today After 3 Days?

Suzlon‘s share price jumped back in the green on Thursday breaking its three straight session losing streak.

What Happened: While it is not immediately clear what’s driving the jump today, the wind energy major on Wednesday evening announced that its board of directors has approved the conversion of 22.86 lakh partly paid-up equity shares into fully paid-up equity shares.

The company also had several block deals in the early hours of trading on Thursday. Around 3 crore shares of the company have changed hands today. The jump today also comes amid a rally in the broader markets. Benchmark indices were hovering around 1% gains at the time of writing. The BSE Power Index was also up around 2.63%.

See Also: Railway Stock Jumps Back In Green After Bagging ₹167 Cr Order

After a great run in 2023, Suzlon’s share price has seen some correction in the past few weeks. The decline has been primarily attributed to reports suggesting that the Ministry of New and Renewable Energy (MNRE) is contemplating the reintroduction of “reverse auctions” for auctioning wind power capacity to energy firms.

However, despite the development, JM Financial has maintained its ‘buy’ rating on Suzlon with a price target of ₹54. The brokerage said that its outlook is supported by factors such as a strengthening order book, improved financial health, and a strong bidding pipeline.

Price Action: Suzlon’s share price was up 4.96% to trade at ₹38.10 in the early hours of trading on Thursday.

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