In a notable turn of events, Suzlon Energy has experienced a remarkable 14% surge in share price during March, effectively ending a prolonged five-month period of decline. Despite this uptick, the stock remains 34% lower than its peak over the past 52 weeks, primarily due to profit-taking activities. Today, shares of Suzlon opened at ₹55.47 on the BSE, reaching an intraday high of ₹57.13 and dipping to a low of ₹55.35.
Positive Outlook on Industry Recovery
According to a recent analysis by JM Financial, Suzlon is optimistic about the wind energy sector’s revival, bolstered by an impressive order book totaling 5.9GW. The brokerage firm expressed confidence that the company will navigate its execution challenges in the upcoming quarters.
- Key Insights:
- The 3MW wind turbine generator (WTG) has received enthusiastic feedback.
- A recent visit to the Daman facility highlighted enhancements aimed at increasing production capacity.
- The factory is transitioning a warehouse into a new hub assembly shop, which will facilitate the manufacturing of four nacelles daily—an increase of one unit.
- Overall manufacturing capacity is set to rise from 3.15GW to 4.5GW by integrating the Daman and Pondicherry facilities.
JM Financial maintains a BUY rating on Suzlon shares, adjusting the target price to ₹71 from an earlier projection of ₹80.
Technical Analysis and Market Sentiment
Anshul Jain, the Head of Research at Lakshmishree Investment and Securities, has noted a bullish trend for Suzlon Energy’s stock. He observed that the share price has established a base around ₹50.6, forming a double bottom pattern. The stock’s recovery above the 10, 20, and 50-day EMAs indicates strong momentum. Jain believes that with ongoing strength, the price is on track to challenge the resistance level at ₹65.5.
Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, echoed these sentiments. He pointed out that after stabilizing around ₹48, Suzlon’s share prices have gained traction throughout March. Bhosale mentioned that the stock is displaying signs of a descending triangle breakout, with potential to rise towards the ₹62 – ₹65 range. Immediate support is anticipated at ₹52.
Conclusion
As Suzlon Energy gears up for what appears to be a promising recovery, both analysts and investors are keeping a close eye on market dynamics. With strong momentum and strategic improvements in production capabilities, the company is well-positioned to capitalize on the growing demand for renewable energy solutions. For those interested in the evolving landscape of wind energy, Suzlon’s journey is certainly one to watch.
