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Suzlon Energy records high volumes, rivals HDFC Bank

24 January 20245 mins read by Angel One
India’s first-ever company surpassing 20 GW of worldwide wind energy installations, the stock has delivered a return of over 84% in just one year.
Suzlon Energy records high volumes, rivals HDFC Bank
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Small-cap and mid-cap shares are buzzing these days and Investors are taking a heavy interest in both small-cap and mid-cap shares. Yesterday on June 07, 2023, one of the stocks from energy pack, Suzlon Energy Ltd has come into the limelight and registered a record-breaking turnover (sales in value) in their stock on NSE and it is reaching close to the heavyweight company like HDFC Bank Ltd and Reliance Ltd.

However, when comparing the total turnover of the stock in value terms Suzlon Energy’s stock turnover was Rs 2000 crore more or less the same compared to HDFC Bank Ltd on June 07, 2023. There was a substantial difference between the turnover of Reliance Ltd and Suzlon Energy.

In terms of traded volume, Suzlon Energy had a significant number of 142 crore shares traded on the NSE on June 7, 2023. This figure is noteworthy when compared to the traded volumes of the two giants, HDFC Bank and Reliance Ltd.

Company Name Turnover (Rs in Crore) Volume (Crore) No. of Trades (Crore)
Suzlon Energy Ltd 1962.81 142.00 0.04
HDFC Bank 1998.55 1.25 0.03
Reliance 1183.65 0.48 0.02

Throughout the month of June, Suzlon Energy’s traded volume has consistently remained above 30 Crore on a daily basis, considering both the NSE and BSE exchanges. On June 6, 2023, the combined traded volume on NSE and BSE was 66 Crore, whereas yesterday, it surged to 170 Crore. Out of this total volume, 37 Crore shares were taken as delivery by investors, which accounts for approximately 22% of the total shares traded on that day. 

Date >> 01-Jun 02-Jun 05-Jun 06-Jun 07-Jun
Traded Volume (Crore)                                     39                             33                               32                               66                                 170
Delivered Quantity (Crore)                                     13                               9                                 9                               22                                   37
Delivery in % 33.76% 27.55% 26.80% 33.33% 22.04%

Today, shares of Suzlon Energy opened at Rs 14.30, almost flat from its previous closing price of Rs 14.40. The stock’s 52-week high is Rs 14.59, and its 52-week low is Rs 5.43. The company’s total Market Capitalisation currently stands at Rs 16757 Crore. Over the past year, the stock has delivered a return of 84%, and over the past three years, it has exhibited an impressive return of 279%. Presently, the stock is trading at a price similar to its trading level in 2018. It had been underperforming since 2008, hitting an all-time low of Rs 1.55 in 2020. However, it has been recovering from this low and is currently trading around Rs 13.85.

In the fiscal year 2022-2023 (FY23), Suzlon Energy experienced a 9% decline in revenue. However, the company achieved an operating profit of Rs 832 Crore, resulting in an operating profit margin of 14%. The net profit for FY23 was Rs 2287 Crore, a significant improvement compared to the previous year’s loss of Rs 177 Crore. Notably, the company has been effectively reducing its borrowing and aiming to reduce its debt from the balance sheet, which is a positive development.

The promoter holding in the company stands at a low of 14.50%, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 7.64% and 5.55%, respectively. Surprisingly, the public holds the majority of the shares with a 72.30% stake in the company.

Recent Announcement

On June 5, 2023, Suzlon Ltd made an announcement that it has achieved a significant milestone by becoming the first Indian wind energy company to surpass 20 GW of worldwide wind energy installations. Suzlon currently holds a substantial 33% share of India’s cumulative wind energy installations.

Moreover, in the month of May, the company secured two major orders. The first order was from Torrent Power Ltd, for the supply of 100 wind turbines with a capacity of 304 MW. This order marked the company’s sixth-largest order to date. The second order was from Serentica Renewables Ltd, involving the supply of 68 turbines with a capacity of 204 MW. These recent developments, along with the positive performance of the company’s stock following the press release, indicate potential growth prospects in the future. Investors should keep this company on their radar.

 

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