Suzlon Energy shares on Monday extended their gains for the second consecutive session. The stock today jumped 9.92 per cent to hit its 52-week high of Rs 15.40. It eventually settled 9.14 per cent higher at Rs 15.29. The scrip has gained 85.56 per cent in the past one month.
In an earnings call, Himanshu Mody, Group CFO of Suzlon Energy, said, "For FY24 (2023-24), I can confirm that at the consolidated level, there will be no tax outgo because we would be utilising our carry forward losses. And the total carry forward losses -- on the balance sheet as of today is exceeding Rs 2,000 crore."
"Compared between FY22 to FY23, the interest cost reduction (was) about 44 per cent. It certainly won't be to that extent (this year) because there may be working capital facilities, which are by way of non-fund-based limits, which we will be ramping up for the execution of these orders," Mody further stated.
Bourses BSE and NSE have put the securities of Suzlon Energy under the short-term ASM (Additional Surveillance Measure) framework. The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-to-earnings (P/E) ratio. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Prior to this, Suzlon Group announced that it has crossed the 20GW wind energy installations milestone through 12,467 wind turbines installed across 17 countries spanning six continents. According to the Ministry of New and Renewable Energy, India currently has a total renewable energy capacity of 168.96 GW (as of February 28, 2023) with about 82GW at various stages of implementation and about 41GW under tendering stage. This includes 64.38GW solar power, 51.79GW hydropower, 42.02GW wind power and 10.77GW biopower.
Suzlon Energy reported a consolidated net profit of Rs 320 crore for the March 2023 quarter, led by lower expenses. It recorded a consolidated net loss of Rs 193 crore in Q4 FY22. In addition, Suzlon reduced its net debt by 79.64 per cent to Rs 1,180 crore in Q4 FY23 compared to Rs 5,796 crore in the corresponding period last year.
On technical setup, support on the counter could be seen at Rs 13.50.
AR Ramachandran from Tips2trades said, "Suzlon is bullish but also overbought on the daily charts with the next resistance at Rs 16.80. A daily close below support of Rs 13.50 could lead to a target of Rs 11.30 in the near term."
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent rise in the past 2-3 weeks gathering momentum with huge volume participation. One can keep the stop loss near Rs 12.40 levels, below which again the bias can weaken and further slide could be expected. As of now, the overall trend is maintained positive as long as Rs 12.40 levels are sustained."
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Suzlon has witnessed a strong spurt in the last couple of trading weeks. With the recent price movement, the stock has witnessed a strong breakout around Rs 11-odd zone. Till the stock sustains above the breakout zone, it is highly anticipated to continue its upsurge with immediate resistance placed around the Rs 16-odd zone in the comparable period."
Meanwhile, Indian equity benchmarks traded higher today, led by gains in technology, metals, state-owned lenders and energy stocks.
Also Read | What Basant Maheshwari says on IEX shares, business model
Also Read | Ujjivan SFB share price target at Rs 50? Here's what analysts say on multibagger stock