Suzlon Energy Ltd.’s stock continued to rise on Thursday for the second straight day. Today, the stock rose 5% to reach Rs 40.47, the upper circuit level. It has increased 8.76 percent at this price in the last two sessions.
The stock was down 20.21% from its one-year high price of Rs 50.72, which was reached last month on February 2, notwithstanding the aforementioned increase. In spite of this, the counter has produced multibagger returns, rising 473.23% above its 52-week low price of Rs 7.06, which it reached on March 29, 2023, when it became a penny stock.
Today’s trading volume of 1.03 crore shares on the BSE was indicative of the stock’s high volume. The amount exceeded the 42.27 lakh share two-week average volume. With a turnover of Rs 41.40 crore, the counter was worth Rs 55,045.44 crore on the market.
“With a 32 per cent market share in India’s wind turbines, Suzlon Energy turned net-cash in 9MFY24 for the first time since FY06. It has battled high debt from incessant acquisitions, the 2008 global financial crisis and anaemic domestic markets due to policy changes, which crimped its prospects.”
Brokerage Anand Rathi
Given the company’s strong market position, we commence coverage of the business with a ‘Buy’ recommendation, on 35 times FY26e PER, the brokerage noted.
The Suzlon Group recently revealed that, due to the company’s improved financial situation, operational efficiency, and favorable sectoral tailwinds, CRISIL has upgraded its ratings to ‘A‐’ with Positive Outlook.
Bourses Suzlon’s securities are now covered by the long-term ASM (Additional Surveillance Measure) framework, thanks to the BSE and NSE. Exchanges warn investors of high share price volatility by placing equities in either short-term or long-term ASM frameworks.
The counter traded lower than the 30-day, 50-day, and 100-day simple moving averages (SMAs) but higher than the 5-day, 10-, 20-, 150-day, and 200-day SMAs based on technical setup. The relative strength index (RSI) for the stock after 14 days was 50.84. Oversold is defined as a level below 30, and overbought is defined as a value beyond 70.
