Suzlon Energy shares up 10%, up 21% since March - Should you buy now?
Suzlon Energy shares rose 9.5% on the BSE on Monday, April 21, extending their gains for the second consecutive session. The share price rose after Suzlon Energy announced that it has bagged a 100.8 MW EPC (engineering, procurement and construction) wind power order from Sunsure Energy.
Suzlon Energy shares opened at ₹55.58, up 11% from ₹55.08, and reached ₹61.10 in intraday trade. The share price finally closed at ₹60.31, up 9.50%.
Suzlon Energy share price trend
Suzlon Energy share price has seen a good rally in the last few weeks. The shares have gained 21 percent since March, after rising 14 percent in March and then about 7 percent in April.
In the past year, the shares have gained 53 percent, hitting a 52-week high of Rs 86.04 on September 12 and a 52-week low of Rs 37.95 on May 13.
Suzlon Energy wind power order details
In an exchange filing on April 17, Suzlon said it has received an order from Sunsure Energy for 100.8 MW EPC wind power, marking its first foray into wind power. The project will be implemented in the Jat region of Maharashtra.
"Under this agreement, Suzlon will supply 48 state-of-the-art S120 wind turbine generators (WTGs) with hybrid lattice towers (HLTs), each with a capacity of 2.1 MW. It will supply the wind turbines, supervise the installation of the equipment and execute the project including installation and commissioning, as well as provide comprehensive operations and maintenance services post-commissioning," the company said, adding that the project will enhance SunSure Energy's renewable portfolio and support its goal of delivering 24/7 power to customers in Maharashtra.
Retail investors' stake in Suzlon increases
Retail investors held 25.12 per cent stake in Suzlon Energy at the end of the December quarter, according to exchange filings. Foreign direct investment investors (FPIs) maintained their stake in Suzlon Energy at around 23 per cent. However, domestic mutual funds in India have reduced their stake in the company in the March quarter from 4.44% in December to 4.17%.
Should you buy Suzlan stock?
Experts are positive on the stock over the medium to long term, with a positive outlook on the company's growth prospects and comfortable valuations.
"The record order book is boosting future revenue expectations, supported by significant additions to production capacity and strong distribution growth. The improved financial performance, evidenced by substantial growth in revenue, EBITDA and PAT, reflects enhanced operational efficiency," said Parakh.
"The strategic focus on high-margin, non-EPC orders will reduce the challenges of industry-wide commissioning along with land availability. Despite the current sectoral headwinds, Suzlan, which is positioned in the high-growth renewable energy market with strategic initiatives for diversification and potential exports, looks strongly positive," said Parakh.
Suzlan's Q4FY25 results are expected in the coming weeks.
Technical experts are also largely positive on the stock.
According to Hardik Matalia, product analyst at Choice Broking, Suzlan is on its way out of its consolidation range after a significant decline of about 46 percent from its previous high.
Matalia noted that after this sharp correction, the stock formed a base near its lower levels, attracting strong buying interest, which led to a steady correction and a potential breakout setup.
Matalia said that Suzlan's price action suggests that it is preparing to move higher, with immediate resistance seen around ₹62. A decisive and sustained move above this level would confirm a breakout from the ongoing consolidation and could set the stage for a short-term rally towards the ₹70 zone.
"The stock has bounced sharply from its support level and is now trading above its short-term, medium-term and long-term EMAs. This alignment of moving averages strengthens the bullish momentum and supports the case for a trend reversal from the current levels," Matalia said.
The relative strength index (RSI) is around 60.80, moving upwards with a positive crossover, indicating improved strength and buying momentum.
"For short-term traders, the current levels offer an attractive buying opportunity, especially if the stock holds above the key support of Rs 55. A breakout and hold above Rs 62 would provide more convincing support for a sustained rise," Matalia said.
"Long-term investors can consider gradually accumulating the stock, as any dip provides a good opportunity to build positions, along with the technical structure.
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