Shares of Suzlon Energy have hit a 5% upper circuit limit, reaching a high of ₹80.36 on September 10, 2024. This surge marks the fourth consecutive day of trading at the upper circuit, reflecting strong investor interest and positive market sentiment surrounding the renewable energy firm.
Main Points
Suzlon Energy Stock Recent Performance
The stock of Suzlon Energy has shown remarkable growth, with a staggering increase of approximately 300% over the past year. This performance is particularly noteworthy given the company’s history, which includes significant fluctuations in stock value. For instance, the shares fell to ₹2 in 2019 but have since rebounded dramatically, now trading at levels not seen since early 2010.
Analysts attribute this surge to several factors, including recent strategic moves by the company. Notably, Suzlon announced a major acquisition of a 76% stake in Renom Energy Services, a deal valued at ₹620 crore. This acquisition is expected to enhance Suzlon’s operational capabilities and expand its market presence in the renewable energy sector, particularly in operations and maintenance services.
Market Analysts Weigh In
Market analysts are optimistic about Suzlon’s prospects. Three out of five analysts covering the stock have issued “buy” ratings, while the remaining two suggest a “hold.” The consensus among experts is that the stock could potentially reach ₹100 in the near future, driven by strong demand in the renewable energy market and the company’s expanding order book.
Morgan Stanley, a prominent brokerage, has maintained an “overweight” rating on Suzlon, with a price target of ₹73.4, which has already been surpassed. Other analysts, such as those from JM Financial, project further upside potential, suggesting targets of ₹82 and even ₹98 in the coming days.
Technical Indicators of Suzlon Energy Stock
From a technical perspective, Suzlon’s shares are currently in overbought territory, as indicated by a Relative Strength Index (RSI) reading of 80. An RSI above 70 typically signals that a stock may be overbought, suggesting that a correction could be on the horizon. However, many analysts believe that the strong momentum could continue, particularly given the positive developments surrounding the company’s operations.
Strategic Moves and Future Outlook of Suzlon Energy Stock
The acquisition of Renom Energy Services is seen as a pivotal moment for Suzlon. This deal not only strengthens Suzlon’s position in the operations and maintenance segment but also aligns with India’s ambitious renewable energy targets. The country aims to achieve 500 GW of renewable energy installations by 2030, creating significant opportunities for companies like Suzlon.
Additionally, Suzlon’s cumulative order book has reached an all-time high of nearly 5 GW, bolstered by a recent major order from NTPC Green Energy worth approximately 1.17 GW. This order marks a significant milestone for Suzlon, as it had previously been ineligible to bid for such contracts due to a negative net worth.
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