Suzlon stock: Despite 24% gain from 52-week low, analyst not in favour of 'fresh buying'

Shares of Suzlon Energy Ltd have gained 24% from their 52-week low in over five months. The multibagger, however, is not in the buying list of analysts. Two analysts BT spoke to advised caution on the Suzlon Energy counter with one in favour of avoiding 'fresh buying'. The analysts views are in line with the bearishness in the stock. Suzlon Energy stock is trading lower than its 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day simple moving averages.

In the current session, shares of Suzlon Energy were trading 1.5% lower at Rs 47.08. Market cap of the firm stood at Rs 64,700 crore.

The stock is under short term correction, slipping 10% in a month.

Virat Jagad, Sr. Technical Research Analyst at Bonanza said, "Suzlon remains weak below major EMAs after breaking the Rs 50–51 support zone. RSI is recovering from lower levels, but trend remains negative. Avoid fresh buying; sustained move above Rs 52.5 can improve momentum, while Rs 47 remains crucial support."

Sachin Gupta, VP – Technical Research, Choice Equity Broking said, "Based on the weekly chart, Suzlon is currently in a neutral-to-bearish medium-term structure, as the stock has been forming lower highs after the Rs 86 peak. The most important support at present is around Rs 46–48, which coincides with the 50% Fibonacci retracement. If this level holds on a weekly closing basis, the stock could attempt a recovery toward Rs 52–54 and then Rs 56–57, with Rs 56–57 being the key resistance and 38.2% Fibonacci level. A decisive weekly close above Rs 56 would significantly improve the chart and could open the way toward Rs 60–65 and eventually Rs 70–75. On the downside, a sustained break below Rs 46–47 could lead to Rs 42–43, followed by the major Fibonacci support around Rs 37.9. Overall, the chart is at a crucial decision zone: Rs 46–47 is the key support, while Rs 56 is the major breakout level. Until Rs 56 is reclaimed, we would remain cautious rather than aggressively bullish."

Nuvama has a 'Hold' call on the stock with a target of Rs 51.

"We are cutting FY27/28E EPS (13 per cent/10 per cent) as we tweak margin and raise depreciation and interest costs. Retain ‘HOLD’ with a target of Rs 51 (from Rs 56) based on 30x FY28E (WTG + F&F EPS) plus DCF of O&M. At CMP, the stock trades at 26 times FY28E EPS," Nuvama said.

About Suzlon 

The Suzlon Group is a leading global renewable energy solutions provider, with ~21.5 GW of wind energy capacity installed across 17 countries. Headquartered at Suzlon One Earth in Pune, India, the Group includes Suzlon Energy Limited and its subsidiaries. A vertically integrated organisation, Suzlon has in-house R&D centres in Germany, the Netherlands, Denmark, and India, and world-class manufacturing facilities across India.