Suzlon Energy share price may remain bullish till Rs 90 for next 7 days, see latest news
Suzlon Energy share price experienced a significant surge, closing at Rs 78.05, marking a 5% increase from the previous day. This rise follows the announcement of a major order win from NTPC Green Energy for 1.17 GW, which has propelled the company’s total order book to nearly 5 GW, the highest in its history. This positive momentum has sparked interest among investors and analysts alike.
Main Points
The recent performance of Suzlon Energy shares has been noteworthy. The stock opened the day at Rs 77.93 and quickly climbed to its upper circuit limit of Rs 78.05. This increase is attributed to the recent contract with NTPC, which involves the installation of 370 wind turbine generators across various projects in Gujarat. The deal not only enhances Suzlon’s order book but also signals a positive shift in the company’s operational capabilities.
Morgan Stanley has maintained an “overweight” rating on Suzlon Energy, indicating a favorable outlook for the company’s earnings visibility in the upcoming fiscal years. Analysts suggest that the stock could reach a price target of Rs 80, reflecting growing optimism about its future performance.
The trading volume for Suzlon Energy shares was significantly higher than average, with approximately 2.24 crore shares changing hands on the Bombay Stock Exchange (BSE). This figure is notably above the two-week average of 61.16 lakh shares, indicating robust investor interest. The total turnover for the day reached Rs 174.08 crore, contributing to a market capitalization of approximately Rs 1,06,460.71 crore.
The stock’s recent performance has attracted attention from both retail and institutional investors. Analysts have noted that the stock had previously faced profit-taking after reaching a 52-week high of Rs 84. However, the current uptrend suggests a renewed interest in the stock, particularly as the renewable energy sector continues to gain momentum.
Market experts have varied opinions regarding the future trajectory of Suzlon Energy shares. Some analysts believe that if the stock can breach the resistance levels around Rs 80-84, it could potentially rally towards the Rs 100 mark. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, emphasized that investors with a high-risk appetite should consider entering the stock, especially given the positive trends in the renewable energy sector.
Others, like Osho Krishan, Senior Research Analyst at Angel One, have highlighted the importance of support levels. He noted that immediate support could be found around Rs 74-73, while a decisive close above Rs 79 could trigger further upside towards Rs 83. The trading range for the short term is expected to be between Rs 75 and Rs 83.
Suzlon Energy’s financial health appears to be improving. The company reported a return on equity (ROE) of 16.84% for the year ending March 31, 2024, a significant improvement compared to its five-year average of -5.95%. This positive trend in financial performance is crucial for attracting investors and boosting confidence in the stock.
Moreover, with a cash surplus of Rs 1,197 crore, Suzlon is well-positioned for future capital expenditures. This includes investments in new technologies and infrastructure, which are essential for maintaining its competitive edge in the rapidly evolving renewable energy market.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
