Suzlon Energy shares jump 10% to hit 52-week high levels; more steam left?

Shares of Suzlon Energy Ltd rose sharply in Monday's trade to hit their one-year high levels. The stock jumped surged 10 per cent to hit its 52-week high of Rs 16.86 over a previous close of Rs 15.33. The scrip continued to rise for the sixth straight session today.

The strong upward move in the share price could be attributed to the company's financial performance and a series of project wins. 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'.

Ravi Singh, Vice-President and Head of Research at Share India, said, "Suzlon Energy shares are looking bullish and trading at their 5-year-high, since January 2018. In the last one month, the stock price has risen by 46 per cent and 56 per cent in last six months. The company presented a strong set of number in Q4 results. It also reduced net debt by 90 per cent."

AR Ramachandran from Tips2trades said, "Suzlon Energy looks bullish on the daily charts. A daily close above resistance of 15.80 could lead to 17.80 in the coming days."

VLA Ambala, Research Analyst at Stock Market Today, said, "The stock is getting ready for a breakout in coming days. Possible targets could be between Rs 20 and Rs 50. Strict stock loss should be kept at Rs 7.30. Both RSI (Relative strength index) and MACD (Moving average convergence/divergence) are showing overbought condition. So, in future it may require sone averaging near Rs 12-14 levels."

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 record run today, led by gains in metals, banks, financials, automobile, consumer durables and energy stocks.

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