Shares of Suzlon Energy Ltd on Friday extended their gains for the second consecutive session. The stock surged 5 per cent to hit a fresh 52-week high level of Rs 53.04. At this price, the multibagger scrip has rallied 279.13 per cent in a year.
The renewable energy solutions provider has been securing new and repeat order wins in the recent past. In addition, the government's constant thrust to boost green energy has been pushing the stock upmove further.
A few technical analysts largely remained positive on the counter. The stock has witnessed a decent and steady pullback from the Rs 40 zone, said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
"A breakout above the tough resistance range of Rs 52 indicated further upside potential visible on the counter with targets of Rs 62 and 74 levels. With overall chart patterns looking good, we suggest buying the stock, keeping a stop loss near Rs 46," he stated.
The counter looked strong on daily charts, Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, suggested. "It has the potential to hit an upside target of Rs 56 in the near term. Keep a strict stop loss placed at Rs 51 level," Singh added.
In a recent earnings call, Suzlon Group chief financial officer Himanshu Mody has responded to a query over 'dividend'. "I know all shareholders, love dividend(s). So, I mean, I cannot answer that question right now. I think let us, you've seen, we've taken certain initiatives of, merging our 100 per cent subsidiary with the parent SGSL (Suzlon Global Services Ltd) with SEL (Suzlon Energy). So, therefore, as we said earlier, there is a business plan that we have set out ourselves to achieve in FY'25," Mody answered.
So, I think, this is probably the best discussion held around May of 2025, Mody further stated.
The company's management also underscored that it turned debt-free in September last year after concluding QIP (Qualified Institutional Placement).
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 66.63. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a negative price-to-equity (P/E) ratio of 1705.21 against a price-to-book (P/B) value of 19.73. Earnings per share (EPS) stood at (-)0.03 with a return on equity of (-)1.16.
As of March 2024, promoters held a 13.29 per cent stake in the company.