Suzlon Energy shares climbed 3 per cent in Thursday's trade after the company informed stock exchanges that it executed a conveyance deed with OE Business Park (OEBPPL) for sale of its corporate office 'One Earth Property'. As per the deal, the One Earth Property would be leased back to Suzlon Energy upon the completion of the sale, for a period of up to five years with and licensing and sub-leasing rights.
Suzlon Energy said the OEBPPL deal is worth Rs 440 crore, which includes Rs 411.21 crore towards conveyance and Rs 28.79 crore towards reimbursement of stamp duty and registration charges. OEBPPL is a special purpose vehicle, whose shares are held by funds managed by 360 ONE Alternates Asset Management.
The Suzlon Energy stock rose 2.57 per cent to hit a high of Rs 76.09 on BSE, taking its year-to-to-date gains to 95 per cent. This is against JM Financial's target price of Rs 72. The scrip has climbed 218 per cent in the past one year.
Kotak Institutional Equities in a note said most top-performing midcap stocks have seen rerating-driven price return over the past 12 months. It said a total of 25 stocks have contributed about 50 per cent of the rally in the Nifty Midcap 150 Index in the past 12 months and most are in the investment category namely capital goods, electricity NBFCs, EMS, railways, real estate.
"More importantly, we would place several of the investment-related stocks in the ‘narrative’ category with a lot of hope and hype supporting their valuations," it said.
As far as the stock is concerned, Suzlon Energy traded in the Rs 75-80 range in the past two weeks. The consolidation suggests indecision among traders, with neither bulls nor bears taking decisive control, Anand Rathi's Senior Manager - Technical Research Analyst Jigar S Patel said.
"As we look ahead, the levels around Rs 73-72 emerge as a key support zone that could provide a strong foundation for the stock. Given this setup, a prudent approach would be to adopt a 'wait and watch' strategy, holding off on any action until Suzlon tests this crucial support zone between Rs 72-73. This approach minimizes the risk of entering a position prematurely, allowing for a clearer confirmation of support before making any trading decisions," Patel said.