Suzlon Energy shares trade above ₹50 for this reason; Should you be a buyer?

As many as 3.7 crore shares of Suzlon Energy changed hands in the block deal that took place on Thursday, according to data available on the exchanges. The number of shares traded amount to 0.3% of the company’s total equity.

The total transaction value for Suzlon’s block deal stood at ₹179 crore. Buyers and sellers in the transaction are not officially known.

Shares of Suzlon have gained for three months in a row. The stock is up 6.5% in June, after having gained 15% in May and 3% in April. The stock had risen 20% in January before having corrected in February and March.

The stock is up 33% so far in 2024. This will be the fifth straight year of positive returns for Suzlon if it manages to achieve this by the end of the year. The stock has delivered positive annual returns since 2020.

During the March quarter earnings call, Suzlon’s management was quizzed about whether the company would consider paying dividends to shareholders, now that they have a net cash balance sheet. In response, CFO Himanshu Mody said that the company has a business plan which is set to be achieved in financial year 2025, post which such a proposal could be considered.

“I know all shareholders, love dividend. So, I mean, I cannot answer that question right now. I think let us, you’ve seen, we’ve taken certain initiatives of, merging our 100 per cent subsidiary with the parent SGSL (Suzlon Global Services Ltd) with SEL (Suzlon Energy). So, therefore, as we said earlier, there is a business plan that we have set out ourselves to achieve in FY’25. So, I think, this is probably a best discussion held around May of 2025,” the CFO answered.

All five analysts that have coverage on Suzlon have a “buy” rating on the stock, with ICICI Securities projecting the highest price target for the stock at ₹60.

Shares of Suzlon are trading 3.7% higher currently at ₹50.71.