12/06/2024

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Suzlon Energy shares hit 5% upper circuit. What analysts say

Suzlon Energy shares hit 5% upper circuit. What analysts say

Renewable energy solution provider Suzlon Energy hit a 5% upper circuit and 52-week high at Rs 23 in Monday’s trade on BSE after the firm announced a significantly large new order acquisition for its 3 MW series of wind turbines from Teq Green Power XI Private Limited, part of O2 Power Private Limited.

“Suzlon will install 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each for the 201.6 MW wind power project. The project is expected to be commissioned in 2025,” the company said in an exchange filing.

Suzlon will supply the wind turbines (equipment supply) and execute the project including erection and commissioning. Suzlon will also provide operation and maintenance services post‐commissioning, the company said.

Domestic brokerage firm JM Financial initiated a ‘Buy’ rating on Suzlon Energy with a target price of Rs 30, which shows an upside potential of 28% from the current market price of Rs 23.5.

“With industry tailwinds in place, a deleveraged balance sheet and a robust order book, we expect a strong pick-up in the company’s performance going forward. We initiate coverage on the stock with a BUY rating (based on a 25x Sept’25E EPS),” JM Financial said.

Suzlon Energy stock has delivered multibagger returns to its investors, as the stock rallied 135% in the last three months, while it has surged over 185% in the last six months. Meanwhile, it has also rallied over 200% in one year, and over 300% in the last two years.

Meanwhile, from a technical perspective, Kunal Shah, Senior Technical and derivatives Analyst at LKP Securities said, “Suzlon has experienced a robust rally over the past few months and currently maintains its position above critical moving averages. This upward momentum has propelled the stock beyond its previous 4-week high, and its ability to sustain this level is a strong indicator of its bullish sentiment.””An effective strategy would involve adopting a “buy on dip” approach around Rs 21-20.5 price range. The stock’s support is evident at the Rs 19 level, providing a potential cushion for bullish movements. With momentum on its side, the stock could potentially see an ascent towards the Rs 24-25 price levels. It’s important to monitor price movements closely and factor in the inherent volatility in trading decisions,” Kunal said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)