Suzlon Energy shares hit upper circuit, rise for seven straight sessions; more upside left? (2024)

Shares of Suzlon Energy are in a bull run, rising for the last seven consecutive sessions. The rally in the multibagger stock comes amid Sensex and Nifty gaining for just two sessions during the period. The stock has risen 25% in seven sessions. The current leg of rally has pushed the renewable energy stock into the overbought zone, indicates its relative strength index (RSI). RSI of the multibagger stock stands at 82.7, signaling it's trading in the strongly overbought zone. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. This indicates there are more buyers than sellers for the stock in both short and long term.

The stock hit an upper circuit of 5% at Rs 68.25 in the current session. It has surged 285% from 52-week low in the last one year. The multibagger stock is currently trading at over 14-year high. Suzlon Energy stock fell to a 52-week low of Rs 17.73 on August 3, 3023.

Market cap of the firm rose to Rs 92,989 crore. The multibagger stock has risen 1035% in the last two years and gained 1085% in three years. Suzlon Energy stock opened at Rs 66 today against the previous close of Rs 65 on BSE. In five years, the stock has zoomed 1569%.

Total 213.22 lakh shares of Suzlon Energy changed hands amounting to a turnover of Rs 144.63 crore on BSE.

Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.

Brokerage Anand Rathi Shares & Stock Brokers has assigned a price target of Rs 69 on the stock.

It has lowered the stock’s ratings but has increased the target price on the back of steep increase in wind-turbine deliveries.

"We lower our rating to 'hold' with a higher 12-month target price of Rs 69, 40 times FY26e PER (35 times earlier), given the impressive growth opportunities,” saidAnand Rathi. Earlier, it had a target price of Rs 60 on the stock. Key risks for Suzlon are adverse government policy, slower-than-expected pickup in WTGs, keen competition, added the brokerage

JM Financial has revised its price target to Rs 71 against the previous target of Rs 54. It has assigned a buy rating to the stock.

"We believe that gradual building of momentum for higher execution, healthy order book, more healthy bid pipeline, strengthening of balance sheet and the organization are driving the company for the next-level of growth," JM Financial said.

Geojit has a price target of Rs 73 for the wind energy stock.Suzlon’s revenue CAGR & ROE are expected to surpass those of the industry peers for FY24-26E. "We anticipate order inflows to be strong in this period, supported by strong government tendering and from commercial and industrial customers. We expect the revenue CAGR of 53 per cent to drive the EPS growth of 66 per cent CAGR, resulting in ROE improvement," said Geojit while assigning a 'buy' rating to the stock.