Suzlon Shares Jump 4% After Bagging Order From Aditya Birla Group

Suzlon‘s share price jumped back into the green after three sessions, going up around 4% to hit an intraday high of ₹46.

What Happened: The wind energy major announced on Wednesday that it will supply 175 wind turbines, each with a rated capacity of 3.15 megawatts, to the Aditya Birla Group.

The order will be executed across two sites. The first site, developed by Suzlon in the Barmer district, Rajasthan, will receive 368.55 megawatts. The second site, developed by the Aditya Birla Group in the Bhuj district, Gujarat, will receive 182.70 megawatts.

Suzlon will also be responsible for the comprehensive operations and maintenance services post-commissioning at both sites. The power generated from these wind turbines will be used for captive usage within the Aditya Birla Group companies.

A project of this magnitude can provide electricity to approximately 4.54 lakh households and curb around 17.92 lakh tonnes of carbon dioxide emissions per year.

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The stock is also gaining strength today after Nuvama Institutional Equities initiated coverage on the wind energy major with a “buy” rating identifying it as a potential leader in the wind energy segment. Nuvama believes that India should increase its wind energy supply to deal with the power deficit faced in the evening hours, and companies like Suzlon could play a pivotal role in this transition. The brokerage has a price target of ₹53 on the stock.

Several other analysts are also bullish on the energy player. Anand Rathi, a domestic brokerage firm, maintained its "buy" rating for the stock with a target price of ₹58. JM Financial and ICICI Securities also have a “buy” rating for the stock with a target price of ₹54.

Price Action: Suzlon's share price was up 3.98% to trade at ₹45.70 in early trade on Wednesday.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.