India’s renewable energy sector is growing rapidly, driven by government policies aimed at achieving ambitious clean energy targets. Wind energy plays a crucial role, with India being one of the world’s largest producers of wind power. Companies like Adani Green Energy, Inox Wind, and Suzlon Energy are at the forefront of this transition.
Adani Green Energy has expanded its renewable portfolio, with a strong focus on wind and solar projects, making it a major player in India’s green energy space. Inox Wind specializes in manufacturing wind turbine generators and providing project solutions, while Suzlon is a leading player in the wind energy market, focusing on wind turbine manufacturing and services. These companies are benefiting from favorable policies and increasing investments, positioning themselves for long-term growth as India shifts toward sustainable energy.
Stock Price Corrects 40% from the Recent High
The stocks of Suzlon Limited came under focus after the company underwent a significant change in its management and operations. Besides this, the government’s push for renewable energies also played a key role for the company in reclaiming its position as one of the leading Wind energy companies under the current market scenario.
Eventually, the stock went on to rise from an all-time low of Rs. 1.55 on March 26, 2020, to a recent high of Rs. 86.4 on September 12, 2024, thereby generating a return of close to 5474% return from its low. However, as the NIFTY 50 started correcting from the top the stocks of Suzlon witnessed immense selling pressure, and in just a matter of 2 months the stock ended up shedding a major chunk of its gain. The stock has seen a massive sell-off resulting in the stock correcting by close to 40% from the recent high.
Share Price
The shares of Suzlon Limited ended up closing at Rs. 54.5, down by 9.03% from its previous close of Rs. 59.39. This shows the strong negative sentiment that’s there in the stock currently.
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About the Company
Suzlon Energy is a multinational company headquartered in Pune, Maharashtra, and is India’s leading renewable energy solutions provider. Specializing in manufacturing wind turbines, Suzlon has become a major player in the wind power industry, with a global footprint spanning 17 countries and over 20,000 + MW of wind projects installed.
The company offers a comprehensive 360-degree package for wind projects, covering everything from design to lifecycle asset management. Suzlon also provides operation and maintenance services for all wind turbine generators sold.
The company operates on a unique business model, where clients contribute 25% of the initial cost, and Suzlon raises the remaining funds through loans. Suzlon has a market share of close to 27% in India’s installed wind turbine segment and boasts a 90% repeat customer rate.
Conclusion
Suzlon Energy has demonstrated remarkable resilience, surging from Rs. 1.55 to Rs. 86.4 in September 2024, delivering a 5474% return. However, recent market corrections have triggered a 40% decline, bringing the stock to Rs. 54.5.
Despite this setback, Suzlon maintains its leadership in India’s wind energy sector with a strong market share and customer retention. The company’s unique business model, comprehensive project management capabilities, and India’s push toward renewable energy continue to position it favorably for future growth.
Written By: Dipangshu Kundu
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