Suzlon Energy shares hit lower circuit amid market crash, what's next? 

Shares of Suzlon Energy Ltd hit the lower circuit in early deals today amid a crash in the stock market. Suzlon Energy stock opened higher at Rs 52.19 today against the previous close of Rs 49.99 on BSE. Total 80.08 lakh shares of Suzlon Energy changed hands amounting to a turnover of Rs 39.69 crore on BSE. Suzlon Energy's market cap slipped to Rs 64,618 crore on BSE.  

The green energy stock fell to a 52-week low of Rs 11.02 on June 5, 2023. Suzlon Energy shares were stuck in the lower circuit of 5% in the afternoon session. Total 80.08 lakh shares of Suzlon Energy changed hands amounting to a turnover of Rs 39.69 crore on BSE. 

Suzlon Energy shares have a beta of 0.1, indicating very low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 68.7, signaling it's trading neither in the overbought nor in the oversold zone. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. 

The stock is down amid the market correction today as Lok Sabha Poll results showed NDA was not anywhere near the 400 seats mark as INDIA alliance logged strong gains from their last election tally. 

Morgan Stanley has assigned an overweight rating to the stock. It initiated coverage on the stock with an overweight rating.

The green energy firm is much stronger after deleveraging and leaner after cutting fixed operation costs, the brokerage said. Suzlon Energy 2.0 is well positioned to benefit from India's energy transition, a report by CNBC TV 18 quoted Morgan Stanley as saying.

Another brokerage Nuvama Institutional Equities has initiated coverage on the stock with a positive outlook on the renewable energy player as it sees Suzlon as the leader in the wind energy sector, holding the pole position. Nuvama expects about 20 per cent upside in the shares of Suzlon Energy.

Nuvama has a coverage on the stock with a target price of Rs 53, at 35 times FY27E EPS for the WTG and foundry & forgings businesses.
Domestic brokerage firm Anand Rathi Shares and Stock Brokers is also positive on Suzlon Energy after its March 2024 quarter earnings. It reiterated its buy rating on the stock suggesting an upside potential of 30 per cent in the multibagger stock.

Anand Rathi retained its 'Buy' call with a 12-month target price of Rs 58, 35 times FY26e PER, given the impressive growth opportunities. However, it cited adverse government policy, slower-than-expected pickup in WTGs, keen competition as the key risks for the business.

Suzlon Energy reported a 9 per cent decline in consolidated net profit on a year-on-year (YoY) basis at Rs 254 crore in the quarter ended March 31, 2024 against a net profit of Rs 280 crore in the year-ago period. Revenue from operations climbed 29 per cent to Rs 2,179 crore in the quarter under review from Rs 1,689 crore in the same period last fiscal.
The multibagger stock has zoomed 500% in  two years and risen 355% in a year.  

Meanwhile, BSE and NSE have placed the securities of Suzlon Energy under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put shares in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.  

Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.