Suzlon Energy shares rose 322% from 52-week low; price targets, technicals and more

Shares of Suzlon Energy have rallied over 300% in a year. The multibagger stock, which hit a 52 week high of Rs 84.40 on August 13  was trading near that level in the current session. The stock climbed 3.15% on Monday to a high of Rs 82.45 against the previous close of Rs 79.93 on BSE. Market cap of the firm stood at Rs 1.11 lakh crore. 

The renewable energy stock is overbought on charts, indicates its relative strength index (RSI). RSI of the multibagger stock stood at 72.8. A RSI of 70 and above indicates the stock is trading in the overbought zone.

The multibagger stock clocked a turnover of Rs 31.78 crore as  39.18 lakh shares changed hands on BSE today.

The stock is trading in the bullish zone above its 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.

The stock has surged 322% from its 52-week low in the last one year. Suzlon Energy stock slipped to a 52-week low of Rs 19.50 on August 18, 3023.

The multibagger stock has risen 313% in a year and gained 1376% in three years. Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.

Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth said, “Overall long-term structure for Suzlon looks positive and stock has the potential to move towards  Rs 94/102 levels in next few months. However, from short term perspective stock is in overbought zone and is trading near its immediate resistance zone of Rs 80-82 and we expect some profit booking from those levels. Players who are already holding the stock can continue to hold with trailing stoploss of Rs 64 whereas for fresh entry Rs 70-68 is an ideal levels to add long positions.”

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said, "There are positive tailwinds for Suzlon, given the Centre's renewable energy push. In terms of earnings, the company's topline remained flattish but profitability has increased. Although, the valuations looked a bit stretched from a medium- to short-term perspective at present."

"Investors with a high-risk appetite should only consider taking a position in the stock. Those holding should maintain a strict trailing stop loss after the recent outperformance," Bathini added.

Brokerage Geojit said, “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.

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.