Suzlon Energy shares rise nearly 4% as CRISIL Ratings upgrades the renewable energy company’s credit rating to CRISIL A with a favorable outlook, highlighting the company’s strong performance and improving profitability did.
In an exchange filing on Tuesday, the renewable energy solutions provider announced that this is CRISIL’s second rating upgrade in 2024, reflecting Suzlon’s strong operational efficiency, disciplined financial management. , and reflected consistent quarter-over-quarter growth.
Earlier this year, CRISIL had assigned Suzlon a CRISIL A- rating, which was further upgraded in recognition of the company’s improving financial metrics and growing opportunities in the renewable energy sector. This positive outlook reflects the potential for Suzlon’s wind power business to perform better with higher execution volumes.
Suzlon Group Chief Financial Officer Himanshu Modi said in a statement: “This milestone strengthens our focus on value creation through efficient capital management and sustainable business practices, and strengthens our focus on renewable energy. It strengthens our position as a trusted leader in the field.”
CRISIL also upgraded the rating of SE Forge Limited, a wholly owned subsidiary of Suzlon, from “CRISIL BBB-” with a stable outlook to “CRISIL BBB+” with a positive outlook.
In November, Morgan Stanley upgraded Suzlon Energy’s stock rating to ‘overweight’ but lowered its price target to Rs 71 per share from Rs 78. The brokerage firm expects Suzlon’s market share to rise to 35-40% by FY2027 from the current FY25. %. Key strengths include Suzlon’s strong business moat and 5.1 GW of order backlog, while risks include potential delays in adding capacity, higher operating costs and increased competition.
