In a span of 16 years, the shares of Suzlon Energy have plummeted by a staggering 91% from their pinnacle. Back in January 2008, this renewable energy stock reached an unprecedented high of Rs 459.80. However, in the current trading session, it stands at a mere Rs 41.50, marking a substantial 90.97% decline from its zenith on BSE. Despite this downward spiral, Suzlon Energy has managed to deliver remarkable returns over the course of one year and beyond. Over the last twelve months, its shares have surged by a formidable 411%, and over the past three years, they have soared by an impressive 782%. Furthermore, within the last five years, the Suzlon Energy stock has accrued a substantial gain of 570.11%.
At the commencement of the current session, Suzlon Energy commenced trading at Rs 42, witnessing a slight uptick. Consequently, the market capitalization of the company has dwindled to Rs 56,428 crore. Notably, a total of 13.29 lakh shares of Suzlon Energy were traded, amounting to a turnover of Rs 5.53 crore on BSE. With a beta of 0.8, Suzlon Energy shares exhibit minimal volatility over the span of a year.
Let us now delve into the insights provided by analysts regarding the future prospects of Suzlon Energy. According to Kushal Gandhi, a Technical Analyst at Stoxbox, Suzlon Energy recently underwent a modest correction of 30% following a remarkable 628% surge in its price action. This correction, however, signifies resilience in the primary trend. Currently, the price action is consolidating around the 20 weeks’ exponential moving average, which serves as an immediate support zone. Additionally, Suzlon Energy demonstrates robust price strength and heightened buyer demand, bolstered by the prevailing sectoral theme characterized by strength and momentum. In light of these factors, the price action of Suzlon presents a favorable risk-reward ratio from the current market price, with a target of Rs 49.50 and a stop loss set at Rs 38.50.
Echoing similar sentiments, Jigar S Patel, Senior Manager and Technical Research Analyst at Anand Rathi Shares and Stock Brokers, notes that Suzlon has been consolidating within the price range of Rs 41 to Rs 42.50 over the past six trading days. Presently positioned near the midpoint of this range at approximately Rs 41.5, this consolidation phase occurs above the middle Bollinger band on a daily scale, indicating a specific technical pattern. With the Bollinger bands serving as a volatility indicator, consolidation above the middle band suggests a potential upward momentum. Consequently, there is a likelihood of Suzlon experiencing a breakout above the upper limit of Rs 42.50 in the forthcoming trading sessions. However, investors and traders are advised to exercise caution and refrain from making impulsive decisions until Suzlon’s stock price conclusively closes above Rs 42.5 on a daily basis.
From a technical perspective, the relative strength index (RSI) of Suzlon Energy’s stock currently stands at 52.3, indicating that it is trading neither in the overbought nor in the oversold territory. Furthermore, the stock is currently trading below the 5-day, 20-day, 50-day, and 100-day moving averages but above the 10-day, 30-day, 150-day, and 200-day moving averages.
Suzlon Energy shares had plunged to a 52-week low of Rs 8.15 on May 9, 2023. The company is renowned for providing renewable energy solutions and is a leading producer of wind turbines. Additionally, it offers a diverse range of solar energy solutions, encompassing various stages such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain management, installation and commissioning, and life cycle asset management.
