Suzlon Energy Ltd (NSE: SUZLON): The company that manufactures wind turbines, Suzlon Energy’s steady decline for two days is over.
In Wednesday’s initial trading session, the stock was trading with an increase of around 4.5 percent.
The company provided special information to exchanges after the market had closed one day earlier, and this increase has been observed in the price.
The company has made public that it will acquire 76 percent of Renom Energy. The acquisition will be handled by Sanjay Ghonawat and will be completed in two phases.
The company stated that it would acquire 51 percent of the first tranche in exchange for Rs 400 crore in cash.
Following this, the remaining 25 percent stake will be purchased over about 18 months. The acquisition could be made via share swaps or cash.
The first tranche is acquired with a value of 784 crore rupees. While the second one will be valued at 1,040 crore rupees.
Following the June quarter the company’s cash balance of 1,100 crore rupees.
Renom Energy provides services for the maintenance and operation of technology as well as capacity related to solar and wind turbine assets.
The company’s assets are under management of approximately 2.5 GW in India. Following that acquisition, Suzlon Energy will also be able to participate in the field of wind energy services.
Suzlon Energy does not have an established presence in this segment at present.
The global brokerage company has set a price target of Rs 73.4 per share for Suzlon Energy stock with an Overweight rating.
Analysts said in their report that the implied value of price-to-sales is lower than that of other companies that are listed.
Renom Energy has a presence in seven states and operates 14 different kinds of turbines.
Three out of five analysts that have reported on Suzlon Energy in their coverage have given a Buy recommendation on the company’s stock.
While 2 analysts have offered an opinion of Hold. This stock has demonstrated an increase of more than 80 percent so far in 2024.
The year before, huge growth was observed in this particular stock.
Suzlon Energy Ltd Stock Performance
| Current Price | ₹ 69.6 |
| 52-wk High | ₹ 71.8 |
| 52-wk Low | ₹ 18.8 |
| 5 Days Return | -0.81% |
| 1 Month Return | 26.05% |
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