Shares of Suzlon Energy Ltd on Tuesday continued their upward move for the third straight session. The stock surged 4.64 per cent to settle at Rs 69.44. At this closing price, it has delivered 80.46 per cent returns to investors in the calendar year 2024 so far compared to an 11.64 per cent rise in benchmark BSE Sensex.
The stock recorded heavy trading volume on BSE as around 2.69 crore shares changed hands today. The figure was way more than the two-week average volume of 57.70 lakh shares. Turnover on the counter came at Rs 185.76 crore, commanding a market capitalisation (m-cap) of Rs 94,764.05 crore.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Investors with a high-risk appetite can buy Suzlon Energy shares. The company has faced corporate governance issues in the past and some of them still persist. As the renewable energy sector is in an uptrend, one can consider adding this stock on dips."
Technically, an analyst said the counter is indicating "signs of a potential trend reversal following profit booking." That said, immediate resistance could be seen at Rs 70 and a decisive move above the said level is required for more upside. On the lower end, a series of support levels may be seen in Rs 66-63 range.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Rs 70 will act as near-term resistance and a decisive move above the said level can only trogger the next leg of rally. Support will be at Rs 63."
Sebi-registered research analyst AR Ramachandran said, "Suzlon Energy stock price is bullish on daily charts with strong support at Rs 66. A daily close above the resistance level of Rs 70 could lead to an upside target of Rs 78 in the near term."
Kushal Gandhi, Technical Analyst at StoxBox, said, "The share price of Suzlon is currently demonstrating signs of a potential trend reversal following a profit booking rally, which is a positive indication. We recommend considering the purchase of the stock upon confirmation of a bullish breakout from the pattern on a closing basis above Rs 70, targeting a price of Rs 80.45, while maintaining a stop loss at Rs 64.40."
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 315.64 against a price-to-book (P/B) value of 24.45. Earnings per share (EPS) stood at 0.22 with a return on equity (RoE) of 7.81. Promoters held a 13.25 per cent stake in the company as of September 2024, which is slightly lower from 13.27 per cent in the previous quarter.