Suzlon Energy shares tank 10% in 4 sessions; what's next for this multibagger stock?

Shares of Suzlon Energy Ltd continued their downward trend for the fourth straight session in Tuesday's trade. The stock fell 5 per cent to hit its lower price band of Rs 40.53. At this price, it has tumbled 10.17 per cent in four trading days and 20.09 per cent from its one-year high price of Rs 50.72, a level seen on February 2 last month. Despite the mentioned drop, the multibagger scrip has rallied over 370 per cent in a year.

Technical analysts largely suggested the stock looked 'bearish' on daily charts.

AR Ramachandran from Tips2trades said, "Suzlon Energy stock price is bearish on charts with strong resistance at Rs 44. A daily close below support of Rs 40 could lead to a downward target of Rs 36.7 in the near term."

DRS Finvest founder Ravi Singh also recommended that the counter looked 'weak'. "It may slip towards Rs 36. Resistance will be at Rs 42," Singh added.

Rahul Ghose, CEO, Hedged.in, said, "The positives for Suzlon include good results recorded during the last few quarters. The stock is seeing a rally with every rally having a small healthy correction before resuming on the upside, which is ideal for it to be sustainable. Those holding should keep a stop loss at Rs 33 and continue to hold for a higher target. A fresh buy should be initiated above Rs 45 level."

Bourses BSE and NSE have put the securities of Suzlon 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.

The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving average (SMA) but higher than the 100-day, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 36.07. 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 1439.91 against a price-to-book (P/B) value of 16.66. Earnings per share (EPS) came at (-)0.03 with a return on equity (RoE) of (-)1.16.

As of December 2023, promoters held a 13.29 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)