Suzlon Energy Limited has witnessed a remarkable uptrend in its share price as the company entered the new financial year 2023-24. The stock, which hit a low of ₹7.05 per share at the end of March 2023, has been on a soaring trajectory since then, establishing itself as one of the multibagger stocks on Dalal Street in FY24.
Market experts attribute the bullish sentiment surrounding Suzlon shares to the company’s debt reduction plans and the announcement of fresh orders, which have bolstered the company’s order book and fundamentals.
Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, commented on the reasons behind the bullish trend in Suzlon shares. He stated, “Suzlon Energy share price has been skyrocketing in the past 5 months, reaching ₹29.25 currently from ₹8.65 on May 5, 2023, delivering a 238 percent return. This move is primarily driven by its debt reduction plan, the recent significant order for a wind energy project, and positive recommendations from brokerage firms.”
Suzlon Energy Ltd holds a market share of 33 percent in India’s domestic market based on total installations and boasts 20 GW of operational wind power capacity globally, positioning it ahead of its competitors. With an existing order book of 1.5 GW, the company is well-positioned for execution over the next two years. In August 2023, Suzlon Energy secured a substantial order for a 201.6 MW wind energy project from Teq Green Power XI, a part of O2 Power.
Regarding the fundamentals that have attracted bullish sentiment from Dalal Street, Rajesh Sinha highlighted Suzlon’s successful debt reduction through a qualified institutional placement of approximately ₹2,000 crores. This move led to an upgrade in ratings by CRISIL, with a two-notch improvement to BBB+/A2 and a positive outlook.
Sumeet Bagadia, Executive Director at Choice Broking, anticipates further upside potential for Suzlon shares. He suggested, “Suzlon shares are in a bullish trend and may reach ₹40 apiece levels in the medium term once they breach the current hurdle placed at ₹35 apiece on a closing basis.” Bagadia advised shareholders to maintain a trailing stop loss at ₹25 and hold for the aforementioned targets.
For new investors considering Suzlon shares, Bagadia recommended entering the market when the stock approaches its support levels of ₹25 to ₹26, with a stop loss at ₹25, targeting ₹35 and ₹40 in the short and medium term.
Suzlon shares have experienced a remarkable turnaround, surging from around ₹7 at the end of March 2023 to ₹29.25 apiece as of the latest trading session. This impressive performance has delivered more than a 300 percent return to positional shareholders over the past six months, solidifying Suzlon’s position as a multibagger stock. The company’s strong fundamentals, including debt reduction and positive order flow, have played a pivotal role in the stock’s ascent.