Suzlon Energy shares rebound 235% from 52-week low; can they hit Rs 30 mark?

Shares of renewable energy firm Suzlon Energy Ltd have recovered 235% from their 52 week low in nearly a year. The stock, which touched a 52-week low of Rs 5.43 on July 28 last year, hit an intraday high of Rs 18.19 on BSE today, rising 234.99% from its yearly low. In the current session, the stock rose 3.05% to Rs 18.19 almost touching the 52 week high of Rs 18.54 reached on July 4 this year. Market cap of Suzlon Energy rose to Rs 22,107 crore.

Turnover and volumes were high for the Suzlon Energy stock with 258.52 lakh shares changing hands amounting to a turnover of Rs 46.51 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 73.1, signaling it's trading in the overbought zone. Suzlon Energy shares have a beta of 1.6, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

ALSO READ: Suzlon Energy shares trading at six-year high; time to buy, sell or hold?

Santosh Meena, Head of Research, Swastika Investmart believes if the current positive momentum continues, the Suzlon stock has the potential to reach a target range of Rs 28–30 in the near term.

“Suzlon has recently shown promising signs as it emerges from a prolonged 15-year bear market. A significant development is the breakout of a long-term downsloping trendline originating from its peak in 2008. Presently, Suzlon is exhibiting an encouraging pattern of higher highs and higher lows, with the formation of an ascending triangle. However, it's important to note that the price range of  Rs 19–20 may pose an immediate supply zone, potentially impacting further upward movement. Nevertheless, if the current positive momentum continues, the renewable energy stock has the potential to reach a target range of Rs 28–30 in the near term,” said Meena.

“In the event of a pullback, it's worth highlighting that the range of Rs 12–10 is expected to act as a robust demand zone, providing substantial support to the stock price,” he added .

ALSO READ: Rs 8 to Rs 1,135: This solar stock turned into a multibagger in three years, trading near record high

Other experts too are bullish on the outlook of the stock.

Abhijeet from Tips2trades said, "Suzlon Energy looks bullish on the daily charts with next resistance at Rs 19. A daily close below the support of Rs 15.8 could lead to Rs 13.2 in the near term."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock has witnessed a decent rise from Rs 13.30 levels to touch the peak zone of Rs 18.45 from where it had slipped down slightly with profit booking seen and currently taking support near Rs 16.65 levels has once again indicated a decent pullback to improve the bias. The bias has once again shown improvement anticipating for further upward move with initial target of Rs 18.70 visible and thereafter, with further strength sustained can carry on the momentum to Rs 20.20 zone.”

ALSO READ: Rs 49 to Rs 289: This power stock turned into a multibagger in three years

Meanwhile, ICICI Securities initiated coverage on Suzlon Energy with a buy call in June end. It assigned a target price of Rs 22 for the renewable energy stock.

“We believe Suzlon is best equipped to benefit from industry tailwinds. We expect a sharp uptick in earnings FY24E onwards. Suzlon has reduced leverage by restructuring its debt and by raising money through a rights issue. As a result, leverage is now merely 1x debt/EBITDA. Initiate with BUY and a target price of Rs 22 per share (assigning a multiple of 24x FY25E EPS)," the brokerage said.

Explaining the rationale behind its stance, it said, "The lowest-cost solution for an optimal decarbonised grid is a mix of wind, solar and battery storage capacities. Wind generates power in monsoon and nights when solar generation is low. Also, we believe higher wind will lead to lower battery storage requirement for a decarbonised grid."

ALSO READ: Multibagger defence stock zoomed 450% from 52-week low to 52-week high in a year, more upside ahead?

"Suzlon has enjoyed a market share of 33%in India’s domestic market (based on total installations)(source: company). It has 20GW of operational wind power capacity globally and is well ahead of its competitors. Note that its existing order book at 1.5GW bodes well for execution through the next two years," added the brokerage.

Of late, the financial performance of the company has remained stellar.

Suzlon Energy logged a consolidated net profit of Rs 319.99 crore for the March 2023 quarter led by lower expenses. It posted a consolidated net loss of Rs 205.52 crore in the quarter ended on March 31, 2022. Total income from operations fell to Rs 1,699.96 crore in Q4 from Rs 2,478.73 crore a year ago. Total expenses declined to Rs 1,628.39 crore in the March 2023 quarter from Rs 2,511.70 crore a year ago.

In the last fiscal, Suzlon Energy posted a consolidated net profit of Rs 2,887.29 crore against a net loss of Rs 176.55 crore in 2021-22. However, total income in the fiscal dipped to Rs 5,990.16 crore from Rs 6,603.97 crore in 2021-22. Revenue slipped to Rs 5946.84 crore in the March 2023 fiscal against Rs 6519.95 crore for the fiscal ended March 2022.

Watch: Buzzing stocks on July 7, 2023: Titan, Praj Industries, Sunteck Realty, NTPC, others

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.

Watch: Samsung Galaxy M34 launched; check out the price, specs and performance of Realme Narzo 60, Moto G73, Redmi Note 12 rival

Watch: Adhura, Tarla, IB71, Blind, Lincoln Lawyer: Top movies and shows on OTT platforms Netflix, Amazon Prime Video, Zee5, Sony LIV to binge-watch this weekend

Watch: Paytm shares surge 61% to Rs 868, may rally up to Rs 1,160; should you buy? See what Citi, Morgan Stanley said after Q1FY24 business update

Watch: ideaForge shares list at 94% premium, nearly double investor's money on share market debut; should you hold or book profit?

Watch: MS Dhoni’s 42nd Birthday: CSK skipper Dhoni aka Thala fans create tallest cut-out for a cricketer, Jadeja other stars wish him, check his career stats and more

Watch: India vs West Indies T20I series: Virat Kohli fails to shine as Rohit Sharma and Yashasvi Jaiswal come out as the new opening duo in Team India’s warm-up match; India squad for Ind vs WI match, dates, live streaming details

Also read: Jhunjhunwala makes Rs 500 crore in few minutes as Titan shares hit record on Q1 update 

Also read: Hot stocks on June 7, 2023: Yes Bank, Suzlon Energy, IdeaForge, South Indian Bank and moreA

Also Watch: AI-generated images of Rekha as Barbie by Myntra

Also Watch: Adhura, Tarla, IB71, Blind, Lincoln Lawyer: Top movies and shows on OTT platforms Netflix, Amazon Prime Video, Zee5, Sony LIV to binge-watch this weekend