Shares of Suzlon Energy Ltd on Tuesday continued their upward move for the fifth straight session. The stock surged 4.98 per cent to hit a fresh 52-week high of Rs 84.40 on BSE. It eventually settled 0.49 per cent higher at Rs 80.79.
At today's closing price, the scrip has gained 21.93 per cent in five trading days and delivered multibagger returns by rallying around 110 per cent on a year-to-date (YTD) basis.
"Suzlon Energy's market capitalisation (m-cap) crossed the Rs 1.10 lakh crore mark today. There are positive tailwinds for this company, given the Centre's renewable energy push. In terms of earnings, the company's topline remained flattish but profitability has gone up," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Although, the valuations looked a bit stretched from a medium- to short-term perspective at present. Investors with a high-risk appetite should only consider taking a position in the stock. Those holding should maintain a strict trailing stop loss after the recent outperformance," Bathini mentioned.
A few technical analysts largely suggested that a decisive close above Rs 84 level is required for a potential upside of up to Rs 110 level. With that being said, support on the counter could be seen at Rs 76, followed by Rs 73 and Rs 66 levels.
"The stock has witnessed a strong rally in the last one month from the Rs 55 zone to hit a high of Rs 84.29, where it saw slight profit booking. The overall trend remains positive but with technical indicators hovering near the highly overheated zone, some profit booking can't be ruled out," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
"The major support zone is positioned at Rs 66 while the near-term support would be lying near Rs 73 level. One can think of buying the stock once again, at these suggested support zones. Once the peak zone of Rs 84.30 is breached decisively, we can expect a further upward move for the next higher targets of Rs 94-110 levels over the short term," Koothupalakkal added.
"Immediate support could be seen at Rs 76 and resistance will be found at Rs 84. A decisive close above Rs 84 level may trigger a further upside towards Rs 87. The expected trading range will be between Rs 70 and Rs 90 in the near term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
Bourses BSE and NSE have put the securities of Suzlon Energy under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 80.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 513.65 against a price-to-book (P/B) value of 30.49. Earnings per share (EPS) stood at 0.16 with a return on equity of 5.95.
As of June 2024, promoters held a 13.27 per cent stake in the company, slightly lower than 13.29 per cent in the previous quarter.