Suzlon Energy Shares Hits Rs 84.40: Can the Stock Sustain Its 240% Growth?
Suzlon Energy Ltd’s share price is expected to remain active as it continues to gain traction in the renewable energy sector. The stock closed at Rs 81.95 on September 24, reflecting a 5% increase from the previous day’s closing price of Rs 78.05. This rise is indicative of strong investor confidence and positive market sentiment surrounding the company’s recent developments.
Main Points
Suzlon Energy has been making headlines recently due to its impressive performance metrics. The company reported a return on equity (ROE) of 16.84% for the fiscal year ending March 31, 2024, significantly better than its five-year average of -5.95%. This improvement showcases the company’s effective management and operational efficiency.
As of September 24, the market capitalization of Suzlon Energy stands at approximately Rs 1,10,877 crore. The stock has shown remarkable growth over the past year, with a staggering 240% increase in its share price. The 52-week high for Suzlon is Rs 84.40, reached on August 13, 2024, while the low for this period is Rs 21.71, recorded on September 13, 2023.
In terms of trading activity, Suzlon Energy has seen substantial volume with over 135 million shares traded recently. The stock’s price action suggests that it is currently positioned between key support and resistance levels.
- Resistance Levels:
- First Resistance: Rs 82.36
- Second Resistance: Rs 83.90
- Third Resistance: Rs 84.82
- Support Levels:
- First Support: Rs 79.90
- Second Support: Rs 78.98
- Third Support: Rs 77.44
The stock opened at Rs 82 today and has fluctuated between a low of Rs 79.10 and a high of Rs 81.95 during trading hours.
A major catalyst for the surge in Suzlon’s share price is its recent order win from NTPC Green Energy for a massive 1,166 MW wind energy project. This contract positions Suzlon as a key player in India’s renewable energy landscape and is expected to drive future revenue growth.
Analysts have responded positively to this news, with many upgrading their ratings on the stock. Currently, most analysts recommend a “Buy” or “Strong Buy,” reflecting optimism about the company’s growth trajectory.
Investors are also taking note of several important financial metrics:
- Price-to-Earnings (P/E) Ratio: Currently at 120.51, indicating high investor expectations for future earnings.
- Price-to-Book (P/B) Ratio: Stands at 28.36, suggesting the stock is trading at a premium compared to its book value.
- Earnings Per Share (EPS): Reported at approximately 0.68, which supports the company’s profitability narrative.
The overall market sentiment towards Suzlon Energy remains bullish as it continues to capitalize on the growing demand for renewable energy solutions in India and globally. The company’s strategic initiatives and operational improvements are likely to attract further investments.
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.
