Suzlon Share Price: Experts Give ‘Buy’ Tag Despite 2,800% Rally in Five Years, Should You Buy This FII-Favourite Stock?

Shares to buy: Suzlon Energy stocks are on an uptrend. In a year, Suzlon’s share price has risen over 115 per cent, while in the last five years, the multibagger’s stock has risen over 2,800 per cent. However, stock market experts remain bullish on the FII favourite. They believe that the revival in the renewable energy sector and Suzlon Energy’s rapidly declining debt should keep its growth momentum intact. Suzlon’s share price may touch ₹140 points in the long term.

Factors causing the increase in Suzlon Energy share price

Asked why Suzlon share price is rising sharply, Ravi Singh, SVP—Retail Research at Religare Broking, said, “The recent rally in Suzlon share price can be attributed to the revival in the renewable energy sector, especially wind power, where the company has a larger presence. Also, Suzlon’s efforts to significantly reduce debt are improving its financial health and boosting investor confidence. Technically, the stock has hit a record high, created a new base and crossed all major moving averages, indicating further upside.”

Sagar Shetty, Research Analyst at StoxBox, said, “Suzlon’s share price has been on a steady rise, reflecting the company’s strong business performance and successful restructuring after a difficult decade. Suzlon recently reported impressive growth in both revenues and earnings, posting its highest quarterly EBITDA in seven years. The company has significantly improved its financial health by reducing debt through various debt-to-equity swaps and becoming net cash flow positive following successful equity issuances to further reduce debt.”

The StoxBox expert said Suzlon has demonstrated solid delivery performance and is expected to continue this trend, supported by a record order book of 3.8 GW. Along with the anticipated operational growth, the company is focused on meeting its business needs, including efficient execution, stringent cost control measures and improving its balance sheet. Favourable sector trends further support a positive future growth trajectory. While many short-term positives seem to be reflected in the current stock prices, making the short-term risk-reward ratio less favourable, the medium-term and long-term outlook remains promising. Successful project execution will be key to driving future growth.

Suzlon Share Target Price

“Strong fundamentals, therefore, combine with a favorable technical setup to make Suzlon Energy stock an interesting investment. Investors can continue to hold long positions with a hold at ₹72, which will help limit losses while also helping to benefit from the ongoing stock rally on broader growth in the renewable energy sector and a corporate recovery.”

Asked about the technical outlook for Suzlon Energy stock, Sumeet Bagadia, Executive Director, Choice Broking, said, “Suzlon Energy stock is currently trading at ₹83 and is consistently making new higher highs and higher lows, indicating a strong uptrend. The monthly chart shows that the Suzlon share price has formed a significant rounding pattern, suggesting further potential growth. It may be prudent for investors holding Suzlon Energy shares to continue holding them with long-term goals ₹100 and ₹140 in mind. Short-term investors may consider booking profits around ₹85 and ₹90 per unit.”

FII’s Shares in Suzlon Energy

As per the shareholding structure of Suzlon Energy Limited as of April-June 2024 quarter, foreign investors hold 20.63 per cent stake in the renewable energy company.

Reservation: The above views and recommendations are those of the individual analysts or brokerage firms, not Mint. We recommend that investors consult certified experts before making any investment decisions.