Suzlon Energy Ltd, a leading renewable energy company, has been witnessing a surge in its share price, attributed to various factors. According to stock market experts, the improvement in the fundamentals of the company and the recent re-opening of communication by the company management with market participants have played a significant role in this upward trend. Additionally, there has been a notable turnaround in the renewable energy sector, which has further fueled positive sentiments among investors on the Dalal Street, the financial hub of India.
Technical analysis of Suzlon’s share price chart indicates a breakout at ₹12.50 apiece levels, suggesting a bullish trend. Analysts predict that the share price may reach levels of ₹18 to ₹20 apiece in the near future. However, it is important to note that the ultimate trajectory of the share price will depend on the overall market mood and sentiment.
One of the contributing factors to the surge in Suzlon’s share price is the broader resurgence of wind and other renewable energy stocks in the recent bull run. Given that Suzlon’s share price was available at a discounted price, many investors have poured significant funds into the stock, leading to a substantial increase in trade volume.
Chandan Taparia, a Derivative & Technical Analyst at Motilal Oswal, emphasized the breakout in Suzlon’s share price and the potential for further upside. Taparia advises existing shareholders to hold the stock with a trailing stop loss at ₹12.50 apiece levels. However, he cautions positional investors against entering fresh positions at the current juncture, as the stock has already surged over 80 percent in the past month.
In terms of recent developments, Suzlon Energy announced in May 2023 that it had secured a second order for its 3 MW product series. The order entails the development of a 69.3 MW wind power project for Juniper Green Energy Private Limited. Suzlon will install 22 wind turbine generators (WTGs) with a rated capacity of 3.15 MW each, featuring their new product with a Hybrid Lattice Tubular (HLT) tower. This order signifies the first major order for Suzlon’s largest turbine rated at 3.15 MW, S144-140m, from the 3 MW series. In addition to supplying the wind turbines, Suzlon will oversee the project’s execution, including erection and commissioning, and provide comprehensive operations and maintenance services post-commissioning. The project is set to be commissioned in 2024 and is located in Surendra Nagar district, Gujarat.
Furthermore, Suzlon Energy recently received an order from Vibrant Energy for 33 wind turbine generators (WTGs) featuring its new 3 MW series with a Hybrid Lattice Tubular (HLT) tower. This order is for a 99 MW wind power project, which is expected to be commissioned by FY25.
Moreover, Suzlon Energy achieved a significant milestone by crossing the 20 GW mark for wind energy installations. The company has installed 12,467 wind turbines across 17 countries, spanning six continents. This accomplishment solidifies Suzlon’s position as a major player in the global wind energy landscape.
In conclusion, Suzlon Energy’s share price has experienced a remarkable upsurge driven by factors such as the company’s improved fundamentals, renewed communication with market participants, and the positive sentiment surrounding the renewable energy sector. Technical analysis indicates a breakout in the share price, with the potential to reach levels of ₹18 to ₹20 apiece. However, caution is advised for investors considering fresh positions, given the recent substantial price increase. The company’s recent orders for wind power projects and its achievement of the 20 GW wind energy installation milestone further highlight Suzlon’s position as a prominent player in the renewable energy industry.
