Suzlon Energy shares climb for 3rd day ahead of MSCI rejig

Shares of Suzlon Energy Ltd jumped for the third straight day on Monday ahead of the MSCI rebalancing, which is scheduled for Wednesday, November 14. The stock gained, as Suzlon Energy is seen to have high probability to get included in the MSCI India Standard index, along with half a dozen other stocks.

The move is seen brining in about $180 million in passive inflows to the counter.

On Monday, the Suzlon stock was trading 1.12 per cent higher at Rs 38.84 on BSE. This was in addition to a 1.13 per cent rise on the counter on Sunday (Muhurat trading) and 1.77 per cent rise in Friday. As per JM Financial, IndusInd Bank, APL Apollo Tubes, Persistent Systems, One 97 Communications (Paytm), Polycab India and Tata Communications are a few other stocks that have good probability of getting added to the index. The brokerage sees Macrotech Developers (Lodha) as probable exclusion. It sees low probability of inclusion of AU Small Finance Bank.

Suzlon Energy is also seen as a probable contender of shifting to the midcap category from the smallcap category in the forming January AMFI rejig, Nuvama, which also sees Suzlon as MSCI high conviction November entrant said. The AMFI list will be released in the first week of January and will be valid from February to July.

Meanwhile, monthly data showed mutual funds cut stakes in Suzlon Energy in October by selling some 13.36 crore Suzlon Energy shares for about Rs 410 crore. Mutual funds, data showed, owned 49.53 crore Sulzon shares at October-end against 62.89 crore shares at September-end. The stock has gained 27 per cent in November so far, in addition to 18.60 per cent rally in October.

Suzlon Energy this month reported a 78 per cent YoY rise in September quarter profit at Rs 102.29 crore compared with Rs 57.43 crore in the same quarter last year. Sulzon Energy said its sales was down nearly 1 per cent for the quarter at Rs 1,417.21 crore. The company , CFO Himanshu Mody in an interview to Business Today TV said, is looking to deliver the existing the 1,600 MW of confirmed orders in a timely. It said it wants to execute the orders in profitable manner over the next few quarters. Suzlon Energy, it said, would be selective on orders that are profitable and commensurate with Suzlon’s margin profiling.

“We expect Suzlon to deliver revenue and Ebitda CAGR of 38 per cent and 43 per cent, respectively, over FY23-26. We have revised our estimates for FY25/26 upwards driven by healthy order inflow, better execution visibility and an improving product portfolio. We maintain our ‘BUY’ rating on the stock with a revised target of Rs 37 per share,” JM Financial said on the stock on November 3.

Small retail investors with up to Rs 2 lakh worth Suzlon Energy shares owned 24.09 per cent stake in the company at the end of Q2. HNIs owned another 18.85 per cent stake in the renewable energy solutions provide while FPIs accounted for 9.66 per cent stake in the company during the same period.

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