Suzlon Energy shares see a sharp spike towards the close of trade; Here's why

NSE

Shares of Suzlon Energy Ltd. saw a sharp recovery from the lows of the day after it signed a framework agreement with a CESC subsidiary.CESC, in an exchange filing on Monday, said that Purvah Green Power Pvt. Ltd., a step-down subsidiary of the company has entered into a framework agreement with Suzlon Energy.The agreement pertains to the supply, EPC and operations and maintenance of wind turbines, which are to be commissioned over the next two to four years.No further details about the order, from commercial implications or the quantum of the orders were shared by CESC.A slew of block deals have been taking place in Suzlon recently. Last month, as much as 3.7 crore shares had changed hands in a deal valued at nearly ₹180 crore.Promoters of Suzlon Energy have a 13.29% stake in the company at the end of the March quarter. The company is yet to upload shareholding for the month of June. Morgan Stanley wrote in its note that Suzlon 2.0 is well positioned to benefit from India's energy transition. It is a much stronger company after the deleveraging process and much leaner after cutting down on fixed operating costs.The brokerage wrote that the market has not fully appreciated Suzlon's growth potential yet, as it expects wind orders worth 32 GW or nearly $31 billion in the next five years.Shares of Suzlon Energy recovered nearly 2% from the lows of the day, and are currently trading 0.2% higher at ₹54.59. The stock has risen 42% so far in 2024.