Suzlon Energy shares trading at 14-month high; time to book profit?

Shares of Suzlon Energy Ltd are trading at nearly 14-month high post stellar March quarter and fiscal 2023 earnings.  Suzlon Energy stock closed at Rs 11.74 in the previous session (May 31, 2023) on BSE.  It ended at Rs 11.92 on April 8, 2022, indicating a 14-month high for the energy stock.  

Share price of Suzlon Energy ended 10.03 per cent higher at Rs 11.74 against the previous close of Rs 10.67 on BSE. The market capitalisation of Suzlon Energy crossed Rs 14k crore mark on Wednesday. The market cap climbed to Rs 14,297 crore on BSE. In Tuesday’s session, closing market cap of Suzlon Energy rose to Rs 12,994 crore. A total of 1672.74 lakh shares of the firm changed hands amounting to a turnover of Rs 191.12 crore on May 31. The stock logged the second highest turnover on BSE.  

In a related development, Prarthana Enterprises bought 6,52,19,260 shares of Suzlon Energy at an average price of Rs 11.41 and sold 6,38,94,122 shares at an average of Rs 11.39, according to NSE data.  

In terms of technicals, the relative strength index (RSI) of Suzlon Energy stock stands at 85.3, signaling it's trading in the overbought zone. The stock has a beta of 1.5, 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 zoom 7% post Q4 earnings; market cap crosses Rs 13,000 crore

Here’s a look at what analysts said on the outlook of the Suzlon Energy stock.  

Abhijeet from Tips2trades said, "Even though Q4FY23 results were excellent, Suzlon Energy stock price has already moved up sharply and current levels should be used to book profits. A daily close below support of Rs 10.65 could lead to target of Rs 8.7 in the near term." 

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed a decent move from Rs 8 zone to touch Rs 11.80 levels with bias maintained positive. Further ahead, there is a resistance barrier at Rs 12.20 where it can halt and would need a decisive breakthrough above that zone for fresh convictional directional move to continue. The near-term support would be near  Rs 11 and it needs to sustain above that zone for the bias to be maintained positive." 

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, “Suzlon has seen a spectacular move in the past couple of trading weeks and soared over 30 percent. Currently, the counter is placed near the previous swing high, which has historically acted as a strong supply zone for the counter. Hence, a sustainable buying above the Rs 12-13 odd zone could only trigger the next round of rally in the counter. Also, post such a strong run, one should not become complacent and should act pragmatically. On the downside,  Rs 9.50- Rs 10 is likely to act as immediate support."

Suzlon Energy reported a consolidated net profit of Rs 319.99 crore for the March 2023 quarter led by lower expenses. The company reported a consolidated net loss of Rs 205.52 crore in the quarter ended on March 31, 2022. The earnings were announced after market hours on Tuesday. 

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 fell to Rs 5946.84 crore in the March 2023 fiscal against Rs 6519.95 crore for the fiscal ended March 2022.  

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. 

 

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