Suzlon Energy shares rose 128% in three months but Rs 29 could be a tough target; here’s why

Shares of renewable energy firm Suzlon Energy Ltd have more than doubled in just three months, delivering multibagger returns for investors of the penny stock. Suzlon Energy stock rose 128.36% in the last three months, surpassing even the six month and year-to-date returns of 121% and 84% respectively. However, shares of Suzlon Energy have lost 7% from their 52-week high of Rs 21.25 in the last four sessions on BSE. The stock touched its yearly high on August 11, 2023 and fell to a 52-week low of Rs 6.60 on October 13, 2022.

In the previous session, the Suzlon Energy stock closed 2.57% lower at Rs 19.73 on BSE against the previous close of Rs 20.25. Market cap of Suzlon Energy declined to Rs 26,756 crore. Turnover and volumes were high for the Suzlon Energy stock with 265.89 lakh shares of the firm changed hands amounting to a turnover of Rs 52.35 crore on BSE.

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In terms of technicals, the relative strength index (RSI) of the stock stands at 59.4, signaling it's trading neither in the overbought nor in the oversold zone. Suzlon Energy shares have a beta of 1.6, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 20 day, 50 day, 100 day and 200 day but lower than the 5 day moving averages.

Here's look at what analysts said on the outlook of the renewable energy stock.

Abhijeet from Tips2trades said, “Suzlon Energy is bearish on the daily charts with strong resistance at Rs 21. Investors should book profits at current levels or hold till daily support of Rs 19.3 is broken on a closing basis. Below 19.3, next support will be at Rs 17."

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Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock overall has maintained the positive bias hovering near the Rs 18-21 zone witnessing resistance barrier near the Rs 21 zone on twice occasions and would need a decisive breach above that zone for further continuation of the positive trend with next targets expected till Rs 25 and Rs 29 levels. The near-term support is maintained at around Rs 17.50 zone below which the trend can turn weak and head for further slide."

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Osho Krishan, Sr. Analyst - Technical & Derivative Research at Angel One said, “Suzlon has massively soared more than two times in the current financial year on the back of robust volumes. On the technical chart, the stock has witnessed several pivotal breakouts and currently hovering at new 52-week highs. The recent rally was vertical in nature, which snubbed in between price-wise corrections. The technical parameters indicate the counter is in the over-bought 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 17 odd zone on an immediate basis, followed by the sacrosanct support of Rs 14-15. On the flip side, a substantial hurdle could be seen around the Rs 20-24 zone in the comparable period.”

Recently, the green energy firm raised Rs 2000 crore via a QIP. On August 9 , the firm announced the launch of qualified institutions placement (QIP) of equity shares to an extent of up to Rs 1,500 crore, with an option to retain oversubscription of up to Rs 500 crore.

Suzlon Energy said its committee set the floor price of the QIP at Rs 18.44 apiece.

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The company will use the funds from QIP to cut debt substantially amid its ongoing efforts to turn around the business.

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.

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