Suzlon Energy shares on Tuesday (November 19) surged by 5 per cent, hitting the upper circuit limit at Rs 62.22 per share. Moreover, this marks the third consecutive day of gains for the company’s stock, following a significant rating upgrade by global brokerage firm Morgan Stanley.

As of now, Suzlon's stock is trading at Rs 62.22, up by 4.99 per cent on the NSE and Rs 62.37 on the BSE, firmly hitting the upper circuit limit.

A Positive Upgrade Sparks Momentum

The sharp jump in Suzlon’s share price came after Morgan Stanley upgraded the stock from 'equal weight' to 'overweight' and set a target price of Rs 71, down from Rs 78.

Morgan Stanley cited the recent correction in the stock price as a good buying opportunity, especially given the company’s fundamentals and growth potential in the renewable energy sector.

The upgrade follows a correction in Suzlon’s stock, which had rallied an impressive 913 per cent from March 2023 to September 2024.

After hitting a one-year high of Rs 86, the stock has seen a 27.65 per cent decline, trading much lower than its recent peak.

This correction, while substantial, has created an entry point for investors, according to the analysts at Morgan Stanley.

Financial Highlights

Coming to the company's financial results for the quarter ended September, the renewable energy player reported a 95.7 per cent increase in its consolidated net profit, which rose to Rs 200.2 crore, compared to Rs 102.29 crore in Q2 FY24.

The company's revenue from operations also saw a 48 per cent growth, reaching Rs 2,103 crore compared to ₹1,421 crore in the same period last year.

The EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) grew by 31.3 per cent year-on-year to Rs 293.7 crore.