Suzlon Energy’s Remarkable Stock Comeback: What Investors Should Know

In recent days, Suzlon Energy has captured the attention of retail investors as its stock price experiences a notable resurgence. Surpassing levels not seen in over two months, the small-cap multibagger has surged by an impressive 30% over just nine trading sessions, rebounding from its 10-month low of ₹46.15 recorded on April 7. The company’s share price recently crossed the ₹60 mark, a level last observed at the end of January, thanks to a combination of steady order wins and an overall positive sentiment in the Indian stock market.

Strong Retail Investor Interest

During the March quarter, retail investors have shown increased confidence in Suzlon Energy, raising their stake in the company to 55%, up from 54.6% in the previous quarter. Despite this impressive recovery, the stock still trades approximately 31% lower than its September peak of ₹85.85.

Should You Consider Buying Suzlon Energy Stock?

With the stock’s recent rally, many investors are wondering whether it’s time to jump in. Technical analysts believe that the upward momentum could continue. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, noted that Suzlon has formed a triple bottom near a significant support level of 50.6 and successfully broken out of its previous lower high-lower low structure by surpassing the 59.5 swing high.

• Key Insights:
  • The breakout was accompanied by volumes exceeding twice the 50-day average, indicating strong institutional interest.
  • Immediate resistance is seen at 65.6, which is viewed as a logical target for the ongoing setup.
  • As long as the stock maintains a position above 59.5, momentum traders can expect further movement toward 65.6.

Recent Order Wins Boosting Growth

On April 17, Suzlon secured a 100.8 MW EPC wind power order from Sunsure Energy, marking the latter’s initial entry into the wind energy sector. This project will be implemented in the Jath region of Maharashtra, where Suzlon will supply 48 cutting-edge S120 wind turbine generators (WTGs), each with a capacity of 2.1 MW.

In early March, the company also landed a 204.75 MW order from Jindal Green Wind 1 Pvt. Ltd., a branch of Jindal Renewables. This partnership represents Suzlon’s largest Commercial & Industrial (C&I) order, contributing to a cumulative capacity of 907.2 MW.

Record Order Book and Future Prospects

Currently, C&I customers make up 59% of Suzlon’s total order book, which has reached a historic high of 5.9 GW. This remarkable achievement underscores the company’s strong foothold in India’s wind energy landscape. In February, Suzlon also secured a repeat order of 201.6 MW from Oyster Renewable, solidifying its leadership position in the sector. This latest collaboration has seen their partnership grow to 283.5 MW in Madhya Pradesh within just nine months.

As Suzlon Energy continues to gain traction, investors are advised to keep a close eye on the stock’s performance and consider the potential for future growth. With its ongoing projects and increased investor interest, Suzlon could be a compelling option for those looking to invest in the renewable energy sector.