Suzlon bags fresh order to supply wind turbines; stock hits fresh 52-week high; see tech analyst views

Renewable energy solutions provider Suzlon Group on Thursday said announced a new order win for the development of a 31.5 MW wind power project for Integrum Energy Infrastructure Pvt Ltd. Suzlon sad it would install 15 units of their S120–140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each in Maharashtra and Karnataka. The project is expected to be commissioned in May 2024, it added. The group, however, didn't disclose the value of the said project.

JP Chalasani, Chief Executive Officer, Suzlon Group said, "The power generated from this project will be used for captive consumption, creating deeper penetration of renewable energy in India. Suzlon is committed to building a sustainable India by powering the domestic economy with green energy."

The order win helped the company's stock to continue its upward move for the fifth consecutive session today. Suzlon Energy, which is a part of Suzlon Group, shares jumped 4.24 per cent to hit a one-year high price of Rs 22.86. Around 3.55 crore shares changed hands today on BSE, lower than the two-week average volume of 3.77 crore shares. Turnover on the counter came at Rs 79.74 crore, commanding a market capitalisation (m-cap) of Rs 30,234.29 crore.

Bourses BSE and NSE have put the securities of Suzlon Energy 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.

That said, the multibagger stock has zoomed nearly 110 per cent in 2023 so far and 180 per cent in a year.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 73.09. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 208.79 against a price-to-book (P/B) value of 60.92.

The scrip a one-year beta of 1.76, indicating high volatility on the counter.

Analysts were divided on the counter. Support level could be seen at Rs 20.70, followed by Rs 19.50 and Rs 17 levels.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "A further rise could be anticipated for next targets between Rs 27 and Rs 31. The near-term support zone is seen near Rs 19.50. Keep stop loss placed at this said level. The overall trend would turn weak only when a decisive breach below Rs 17.70 is witnessed."

AR Ramachandran from Tips2trades said, "Suzlon Energy is bullish but also overbought on the daily charts. Investors should book profits at current levels or hold till daily support of Rs 20.70 is broken on a closing basis. Below Rs 20.70, next support will be at Rs 17."

 

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