Suzlon Energy’s market capitalisation crosses Rs 1 lakh cr for the first time. Where are the shares of this multi-fold growth stock heading?

Suzlon Energy shares touched a fresh 52-week high on Friday, with the multibagger’s market capitalisation crossing the Rs 1 lakh crore mark for the first time. Suzlon Energy shares were trading at an upper 5% mark at Rs 76.59 from their previous close of Rs 72.95 on the BSE. At 2:57 pm, the renewable energy stock had a market capitalisation of Rs 1.04 lakh crore. The multibagger shares also recorded a high turnover of Rs 202.12 crore after 267.81 lakh shares changed hands on the BSE today.

The stock is trading in a bullish zone above its 5-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages. This also indicates that there are more buyers than sellers in the stock in both the short and long term.

Today’s rally has pushed the renewable energy stock into overbought territory, which indicates its relative strength index (RSI). The multibagger’s RSI is 73.8. An RSI of 70 and above indicates the stock is trading in overbought territory.

This is the third consecutive session of gains for Suzlon Energy shares. In the previous session too, the stock was up 5% (making an upper circuit) to Rs 73.04 on BSE.

It has risen 297% from a 52-week low in the past year. The renewable energy multibagger stock is currently trading at a 14-year high. Suzlon Energy stock fell to a 52-week low of Rs 19.30 on August 14, 3023.

The multibagger stock is up 291% in a year and has gained 986% in three years. Earlier, Suzlon Energy stock opened at Rs 74.60 today against previous close of Rs 72.95 on BSE. Suzlon Energy stock has a beta of 0.8, indicating low volatility over the year.

Jigar S Patel, Manager at Anand Rathi Securities said, “The Suzlon stock chart seems promising, showing positive momentum. However, caution is advised as the stock is trading well above all major moving averages. This suggests a mean reversion where the stock could revert to mid-price levels. Going forward, a support zone is identified at Rs 65. This range provides a potential entry point for longs, with an expected upside target of Rs 80. To manage the risk, a stop-loss should be placed below Rs 61 on the intraday close.”

Laxmikant Shukla, Technical Research Analyst at YES Securities is bullish on the stock. He has given a buy recommendation on the stock with a target price of Rs 80. A stop loss of Rs 65 can be put.

“Suzlon is currently showing signs of recovery after posting a profit in the last two days, during which the prices fell from a peak of Rs 72 to a low of Rs 65. The stock has stabilized near the parity line after two days of immediate decline. Moreover, the stock is still trading above all key moving averages, accompanied by bullish candlestick formations indicating a change in price trend from bearish to bullish. Considering these factors, one can use this dip as a buying opportunity and expect a pullback move towards Rs 80 with a stop loss of Rs 65 at closing,” Shukla said.

Brokerage Geojit said, “CAGR and ROE are expected to outperform industry peers in FY24-26E. “We expect order inflows to be strong during the period, supported by strong government tenders and from commercial and industrial clients. We expect revenue CAGR of 53 per cent to drive EPS growth at 66 per cent CAGR, leading to improved ROE,” Geojit said, assigning a ‘buy’ rating to the stock.

Suzlon on Tuesday signed definitive agreements to acquire 76 per cent stake in Renom Energy Services, in two tranches, from Sanjay Ghodawat Group (SGG). Renom is the largest Multi Brand Operations and Maintenance (MBOMS) services provider in the country, with assets of 1,782 MW in Wind, 148 MW in Solar and 572 MW in BOP in maintenance across customer segments.

Suzlon Energy said the first tranche of the Renom Energy transaction will involve acquisition of 51 per cent stake for Rs 400 crore. In the second tranche, Suzlon Energy will acquire an additional 25 per cent stake within 18 months of acquisition of the first tranche for Rs 260 crore.