The recent surge in Suzlon Energy’s stock price has captivated investors, showcasing a remarkable increase of over 340% in just three years. However, despite a significant pullback of nearly 40% from its peak recorded on September 12, 2024, the stock is making headlines again. On Friday, Suzlon’s shares enjoyed a boost of more than 5%, riding on positive trends in the Indian stock market and promising shareholder updates for the March 2025 quarter.
Positive Shareholding Trends
Recent data from the BSE indicates a strong rise in retail investor participation. By the close of the March quarter, approximately 56.12 lakh retail shareholders—those holding authorized capital of up to ₹2 lakh—had invested in Suzlon Energy, a notable increase from 54.09 lakh in the preceding December.
- Retail Ownership: Retail investors now control 25.12% of Suzlon, up from 24.49% at the end of December.
- Foreign Investments: Foreign portfolio investors have maintained a steady stake of around 23%.
- Domestic Mutual Funds: Conversely, domestic mutual funds have slightly reduced their holdings to 4.17%, down from 4.44%.
Expert Recommendations
Motilal Oswal Financial Services has recently begun coverage of Suzlon Energy, issuing a BUY recommendation with a target price set at ₹70 per share. Their analysis highlights that, despite a general decline in valuations across the capital goods sector, Suzlon’s robust earnings growth, solid order book, and improving cash flows position it favorably in the industry.
The brokerage anticipates a 63% CAGR in EPS from FY24 to FY27, which significantly outpaces competitors within India like ABB India (23%), Siemens (20%), Thermax (17%), and CG Power (26%), as well as global rivals such as SANY (26%).
Current Stock Performance
On the last trading day, Suzlon’s shares closed at ₹53.03, reflecting a 3.51% increase. Over the past year, the stock has appreciated by 23.84%, although this lags behind the sector average growth of 32.22%, according to Trendlyne data.
Market Insights
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, noted that Suzlon’s stock is establishing a solid foundation within the ₹48–50 range. This crucial support level has proven resilient against bearish attempts, fostering a bullish outlook among investors.
- Immediate Resistance: The ₹60 mark is seen as the next resistance point; breaking above this could lead to a swift rally towards ₹85 in the near term.
- Support Levels: Maintaining above ₹48 on a weekly closing basis is essential to sustain the upward trend. A drop below this threshold may signal a potential reversal.
As the market evolves, any dips toward the support zone might serve as attractive entry points for optimistic traders. Overall, the outlook remains promising, with potential for momentum to accelerate if the ₹60 resistance is surpassed with significant trading volume.
As the situation unfolds, investors are encouraged to keep an eye on Suzlon Energy as it navigates this pivotal phase in the market.
