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Suzlon Energy shares hit upper circuit, check fresh price target

Suzlon Energy shares hit upper circuit, check fresh price target

Multibagger stock: Suzlon Energy shares rose for the second straight session today, hitting upper circuit on BSE. The stock has surged 287% from 52-week low in the last one year.

Aseem Thapliyal
Aseem Thapliyal
  • Updated Aug 8, 2024 10:03 AM IST
Suzlon Energy shares hit upper circuit, check fresh price targetSuzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. This indicates there are more buyers than sellers for the stock in both short and long term.

Shares of Suzlon Energy hit a fresh 52-week high on Thursday amid weakness in the broader market. The current leg of rally has pushed the renewable energy stock near the overbought zone, indicates its relative strength index (RSI). RSI of the multibagger stock stands at 69.8. A RSI of 70 and above indicates the stock is trading in the overbought zone.

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Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. This indicates there are more buyers than sellers for the stock in both short and long term.

Suzlon Energy shares rose for the second straight session today, climbing 5% (hitting its upper circuit) to Rs 73.04 against the previous close of Rs 69.57 on BSE. It has surged 287% from 52-week low in the last one year. The multibagger renewable energy stock is currently trading at 14-year high. Suzlon Energy stock fell to a 52-week low of Rs 18.84 on August 9, 3023.

Market cap of the firm rose to Rs 99,231 crore. The multibagger stock has risen 936% in the last two years and gained 1068.64% in three years. Earlier, Suzlon Energy stock opened at Rs 71.19 today against the previous close of Rs 69.57 on BSE. In five years, the stock has zoomed 1906.59%.

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Total 79.02 lakh shares of Suzlon Energy changed hands amounting to a turnover of Rs 57.23 crore on BSE.   

Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.

Laxmikant Shukla, Technical Research Analyst at YES Securities is bullish on the stock. He has a buy rating on the stock with a price target of Rs 80. One can fix a stop loss of Rs 65.

"Suzlon is now showing signs of revival after experiencing a profit booking over the past two days where prices declined from a peak of Rs 72 to a low of Rs 65. The stock has found stability near its line of parity after two days of straight fall. Additionally, the stock is still trading above all its key moving averages accompanied by the formation of bullish candles indicating a shift from a bearish to a bullish price trend. Looking at these factors, one can utilize this dip as a buying opportunity and expect a pullback move on the upside till Rs 80 with the stop loss of Rs 65 on a closing basis," said Shukla.

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Brokerage Geojit had assigned a price target of Rs 73 for the wind energy stock which was met today.

“Suzlon’s revenue CAGR & ROE are expected to surpass those of the industry peers for FY24-26E. "We anticipate order inflows to be strong in this period, supported by strong government tendering and from commercial and industrial customers. We expect the revenue CAGR of 53 per cent to drive the EPS growth of 66 per cent CAGR, resulting in ROE improvement," said Geojit while assigning a 'buy' rating to the stock.

Foreign brokerage Morgan Stanley has maintained its 'overweight' recommendation on the firm with a price target of Rs 73.40 per share.  

On Tuesday, Suzlon inked executed definitive agreements for the acquisition of a 76 per cent stake in Renom Energy Services, in two tranches, from the Sanjay Ghodawat Group (SGG). Renom is the largest Multi Brand Operations and Maintenance service (MBOMS) provider in the country with assets of 1,782 MW in Wind, 148 MW in Solar, and 572 MW in BOP under maintenance across customer segments.

Suzlon Energy said the first tranche of the Renom Energy deal would involve the acquisition of a 51 per cent stake for a consideration of Rs 400 crore. In the second tranche, Suzlon Energy would acquire an additional 25 per cent stake within 18 months from the acquisition of the first tranche for a consideration of Rs 260 crore. 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Aug 8, 2024 10:04 AM IST
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