Shares of Suzlon Energy Ltd continued their losing run for the third consecutive session in Friday's trade. The stock fell 1.57 per cent to hit a day low of Rs 80.52. Last checked, it was trading 1.27 per cent down at Rs 80.76. At this price, the scrip has slipped 6.42 per cent from its recent 52-week high value of Rs 86.04, a level seen earlier this month on September 12. Despite the mentioned drop, it has delivered multibagger returns to investors by rallying 109.72 per cent in 2024 so far.
Today's downward move in the share price came after it was reported that Morgan Stanley downgraded Suzlon to 'equalweight' from its earlier rating of 'overweight'. However, the international brokerage has raised its target price on the wind energy solutions provider's stock to Rs 88 per share from Rs 73 earlier.
"Suzlon is up 120 per cent in the past 6 months, outperforming Nifty by 93 per cent, driven by a strong increase in order book and improved balance sheet/cash flow from operations. But we now see risk reward as more balanced and would await for stronger execution vs our base case to become more constructive again," it stated.
Technically, the counter traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 54.37. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 520.07 against a price-to-book (P/B) value of 30.87. Earnings per share (EPS) stood at 0.16 with a return on equity (RoE) of 5.95.
"Support will be Rs 78 and resistance Rs 83. A decisive close above Rs 83 level may trigger a further upside towards Rs 86. The expected trading range will be between Rs 76 and Rs 86 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
"Suzlon Energy stock price is bearish on daily charts with strong resistance at Rs 86. A daily close below support of Rs 79 could lead to a downward target of Rs 68 in the near term," said Sebi-registered research analyst AR Ramachandran.
Around 22.40 lakh shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 69.19 lakh shares. Turnover on the counter came at Rs 18.25 crore, commanding a market capitalisation (m-cap) of Rs 1,10,727.50 crore.
As of June 2024, promoters held a 13.27 per cent stake in the company, which is slightly lower from 13.29 per cent in the previous quarter.