Suzlon Energy shares hit fresh 52-week high; stock up over 400% in six months. Check revised target price

Shares of Suzlon Energy extended their upward move for the sixth straight session in Friday's trade. The stock jumped 4.61 per cent to hit a one-year high of Rs 44. At this price, the multibagger scrip has gained around 410 per cent in the last six months.

Suzlon recently said it has received RLMM (Revised List of Models & Manufacturers) for its S144, a 3 MW series of wind turbines from the Ministry of New and Renewable Energy. As per the company, the S144 turbine is designed to make it customisable for the site‐specific requirements for higher PLFs (Plant Load Factors).

"This listing marks an important milestone for successful commercialization of the product. Suzlon has already installed the first prototype of this series at a hub height of 160m with a Hybrid Lattice Tubular (HLT) tower at the Gondal site in Gujarat. Currently the product is in the process of serial manufacturing and commercialization," it stated.

On technical setup, support on the counter could be seen at Rs 40.5, followed by Rs 39.50 and Rs 34 levels. On the higher side, immediate resistance is near the Rs 45-46 zone.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon continues to see a robust run even in the extremely overbought scenario. One needs to have a cautious approach, keeping a trail stop losses to Rs 39.50 (bullish gap), while the strong support lies around Rs 34-odd level. On the higher end, Rs 45-46 is likely to be seen as immediate resistance, followed by the Rs 48-50 sub-zone."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Fresh longs are not advised as the current price action is way above 200-DEMA (Double Exponential Moving Average)."

AR Ramachandran from Tips2trades said, "Suzlon Energy is bullish but also very overbought on daily charts with next resistance at Rs 46.6. Investors should book profits at current levels. Support will be at Rs 40.5."

Bourses BSE and NSE have put the securities of Suzlon 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 was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 86.62. 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 400.44 against a price-to-book (P/B) value of 116.83.

The scrip has an analyst target price of Rs 30, Trendlyne data showed, suggesting a potential downside of 33 per cent in a year. It has a one-year beta of 0.58, indicating low volatility on the counter.

(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.)

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