Suzlon Energy shares hit fresh 52-week high; mutibagger stock up 201% in a year; time to buy, sell or hold?

Shares of Suzlon Energy Ltd continued to rise sharply on Tuesday and touched their fresh one-year high levels. The stock extended its gains for the seventh straight session today. It surged 9.96 per cent to hit a new 52-week high of Rs 18.54 over a previous close of Rs 16.86. It eventually settled 8.96 per cent higher at Rs 18.37. The strong upward move in the share price could be attributed to the company's financial performance and a series of project wins.

The multibagger counter has gained 200.65 per cent in the past one year and 71.36 per cent in 2023 so far.

Brokerage ICICI Securities on June 29 initiated coverage on Suzlon Energy with a target price of Rs 22. "Suzlon Energy is getting back into shape after a rollercoaster journey over the last decade due to a slump in industry volumes and high leverage led by the acquisition of Repower in 2008. However, after a series of restructuring, net debt has declined sharply from Rs 13,000 crore in FY20 to Rs 1,200 crore as of March 2023," the brokerage stated.

On the technical front, analysts said the counter largely looked 'bullish' but also 'overbought'.

"Suzlon Energy is bullish but also overbought on the daily charts with next resistance at Rs 18.30. Investors should book profits at current levels or hold till daily support of Rs 15.75 is broken on a closing basis," said AR Ramachandran from Tips2trades.

"Possible targets for the stock could be between Rs 20 and Rs 50. Both RSI (Relative strength index) and MACD (Moving average convergence/divergence) are showing overbought condition. So, in future it may require some averaging near Rs 12-14 levels," said VLA Ambala, Research Analyst at Stock Market Today.

"The counter has given a positive breakout above 5-year high level that has been sustaining since last three trading sessions. After a long period of time, we have witnessed short-term moving average crossing above long-term moving averages, suggesting a buy on positional basis with stop loss at Rs 12.90. Fresh buying can be done but on dips rather than at one go. Stop loss remains same at Rs 12.90 for a Rs 27-plus target on long-term basis," said Kush Ghodasara, independent market expert.

"Suzlon Energy shares are looking bullish. In the last one month, the stock price has risen by 57 per cent and 72 per cent in last six months. The company presented a strong set of number in Q4 results, reducing net debt by 90 per cent," said Ravi Singh, Vice-President and Head of Research at Share India.

The counter's 14-day relative strength index (RSI) came at 80.66. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 9.72. It has a price-to-book (P/B) value of 42.15.

The scrip has a one-year beta of 1.52, indicating high volatility.

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.

Meanwhile, Indian equity benchmarks extended their gains record run today by scaling fresh all-time high levels. The domestic indices were up led by gains in financials, banks and technology stocks.

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