Suzlon Energy shares hit one-year high, zoom over 350% in 6 months; should you book profit?

Shares of Suzlon Energy Ltd rose sharply in Wednesday's trade, extending their gains for the sixth consecutive session. The stock jumped 4.95 per cent to hit a 52-week high of Rs 39.20. At this price, the scrip has gained 28.19 per cent in six trading days. In the last six months, the counter has given multibagger returns by rallying more than 350 per cent.

The renewable energy firm's consolidated net profit came at Rs 102.29 crore during the second-quarter of the ongoing financial year (Q2 FY24), up 78.11 per cent from Rs 57.43 crore in the year-ago period. The company said its balance sheet became debt free post the successful completion of QIP (Qualified Institutional Placement).

Suzlon Energy CFO Himanshu Mody said the company's focus in the next few quarters will be on delivering of the 1,600 MW of confirmed orders in a timely and profitable manner.

On technical setup, support on the counter could be seen at Rs 37, followed by Rs 34, Rs 30 and Rs 26 levels. The next substantial hurdle for the stock is at Rs 40.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon has massively soared nearly 5x in the current financial year on the back of robust volumes. The stock has witnessed several pivotal breakouts and currently hovering at new 52-week high. The recent rally was vertical in nature, which snubbed in between price-wise corrections. The technical parameters indicate the counter is in the overbought territory and one should not be carried away with the ongoing momentum. As far as levels are concerned, a series of support is placed around Rs 34-30 odd zone on an immediate basis, followed by sacrosanct support of Rs 26. On the flip side, the next substantial hurdle could be seen around the Rs 40 zone in the comparable period."

AR Ramachandran from Tips2trades said, "Suzlon Energy is bullish but also overbought on daily charts with next resistance at Rs 40.2. Investors should book profits at current levels or hold till support of Rs 36.45 is broken on a closing basis."

DRS Finvest founder Ravi Singh said the stock may hit Rs 42 in the near term. Keep stop loss placed at Rs 37, he mentioned.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, suggested a near-term target of Rs 45 for Suzlon shares, keeping a stop loss at Rs 34.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a splendid move in the last 6 months gaining from around 8 level to touch 39 level. A strong uptrend visible on the counter. The next near term target expected is at around Rs 45 zone and thereafter with strength sustaining can achieve Rs 52-54 levels. Rs 34 would be the support zone."

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.

(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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