Shares of Suzlon Energy Ltd surged nearly 5 per cent during the trading session on Friday, merely shy of its upper circuit limit, but managed to hit its new-52 week highs. The stock has been in demand at Dalal Street, rising nearly 9 per cent in the last two trading sessions.
Shares of Suzlon Energy advanced 4.88 per cent to Rs 52.99-level on Friday, hitting its new 52-week highs and commanding a total market capitalization of more than Rs 72,000 crore. The scrip had settled at Rs 50.52 in the previous trading session. The stock has gained about 9 per cent in the last two trading sessions.
Suzlon Energy shares have zoomed nearly 300 per cent from its 52-week low at Rs 13.28 hit a year ago. The stock is up more than 40 per cent in 2024 so far, while it is over 20 per cent in the last one month. The stock has zoomed more than 30 times from its covid-19 lows around Rs 1.70.
The momentum in Suzlon Energy is supported by the government policy which has boosted the charm of renewable energy companies among the hot investment themes on Dalal Street, thanks to the central government's thrust to boost green energy. Even the chart readers remain bullish on the counter.
Commenting on the technical charts, Kushal Gandhi, Technical Analyst at Stoxbox said tha Suzlon Energy trades in a potential rounding bottom pattern with a 30 per cent depth, suggesting that committed investors are holding their positions.
"This ongoing pattern suggests further accumulation, which may strengthen the continuation of the primary trend. Additionally, the stock is displaying strong relative strength compared to the overall market, indicating improving buyer demand. We recommend buying Suzlon Energy, with a target price of Rs 60 and a protective stop at Rs 47.50," he said.
Suzlon Energy is among three dozen stocks where mutual funds bought more than 1 crore equity shares in May. Interestingly the stock has delivered double digit returns to the investors. Mutual Funds held stake in the company worth Rs 2,172 crore in the company as of May 2024.
Foreign brokerage Morgan Stanley has recently initiated coverage on Suzlon Energy with an 'overweight recommendation, saying the renewable energy solutions provider is much stronger after deleveraging and leaner after cutting fixed operating costs. The brokerage has maintained its view so far with a target price of Rs 58.5 apiece.
"Suzlon Energy 2.0 is well positioned to benefit from the energy transition market. Plant to date has produced nearly 12 GW Nacelle out of the company's 20.7 GW installed asset base. The plant has a capacity to produce 2.5 GW Of turbines per year Nacelle & Hub Forms 65 per cent of the cost of equipment," reported MoneyControl, citing the global brokerage.
Among the domestic brokerage firms, they are also mostly positive on the stock. ICICI Securities has a buy rating on the stock with a target price of Rs 60, while JM Financial and Nuvama Institutional Equities also have 'buy' recommendation on the stock with target prices of Rs 54 and Rs 53, respectively.
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