Suzlon Energy shares continue their remarkable ascent, touching new one-year high levels and extending their gains for the seventh consecutive session. The stock experienced a significant surge of 9.96%, surpassing the previous closing price of Rs 16.86, and reaching a new high at Rs 18.54. Ultimately, it settled at Rs 18.37, an impressive 8.96% higher. The surge in share price can be attributed to the company's robust financial performance and a series of project wins, making Suzlon Energy an exciting prospect for investors.
Over the past year, this multibagger stock has witnessed extraordinary growth, with an impressive gain of 200.65%. In 2023 alone, the stock has surged by 71.36%. These remarkable figures have piqued the interest of investors, leading to discussions about the appropriate course of action: whether it is the right time to buy, sell, or hold Suzlon Energy shares.
Recently, a company called ICICI Securities started looking into Suzlon Energy and they believe that the price of its shares could reach Rs 22. The firm highlights Suzlon Energy's journey of recovery after facing industry volume challenges and high leverage due to the Repower acquisition in 2008. Through a series of restructuring efforts, Suzlon Energy successfully reduced its net debt from Rs 13,000 crore in FY20 to Rs 1,200 crore as of March 2023. This reduction in debt has restored confidence in the company and attracted the attention of investors.
Analyzing the technical aspects, experts note that while the counter appears bullish, it is also considered overbought. With the next resistance level at Rs 18.30, investors are advised to either book profits at current levels or hold their positions until the daily support of Rs 15.75 is broken on a closing basis. It is important to exercise caution as both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) indicate an overbought condition. This suggests the possibility of averaging near Rs 12-14 levels in the future.
However, others believe the positive breakout above the five-year high level, which has been sustained for the past three trading sessions, is a strong indication to consider buying Suzlon Energy shares. The short-term moving average has crossed above the long-term moving averages, providing a favorable position for positional buyers. A stop loss at Rs 12.90 is recommended, with a long-term target of over Rs 27. While fresh buying can be done, experts advise waiting for potential dips rather than investing all at once.
Recent financial results have further bolstered the bullish sentiment surrounding Suzlon Energy shares. The company showcased a robust performance in Q4, resulting in a significant reduction of net debt by 90%. The impressive achievement of Suzlon Energy, along with a substantial increase of 57% in the stock price during the past month and a remarkable 72% in the last six months, has created a positive feeling among investors.
Suzlon Energy is a company that focuses on creating renewable energy solutions. They are experts in making wind turbines and also offer various solutions for solar energy. Its comprehensive services include solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission, and life cycle asset management.
While Suzlon Energy's shares have exhibited high volatility, reaching a 52-week high and posting substantial gains, the decision to buy, sell, or hold remains subjective and should be based on individual risk tolerance and investment goals. Before making any investment decisions, it's crucial to seek guidance from a financial advisor or take the time to conduct thorough research.
As Indian equity benchmarks continue their upward trend, scaling fresh all-time high levels, the overall market sentiment remains positive. Financials, banks, and technology stocks are leading the charge, contributing to the optimistic outlook for the Indian stock market.
In conclusion, Suzlon Energy's remarkable surge in share price, along with its financial performance and project wins, has captured the attention of investors. However, the decision to buy, sell, or hold Suzlon Energy shares requires careful consideration of expert opinions, technical analysis, and personal investment objectives. Stay informed, consult professionals, and make informed decisions to navigate the dynamic stock market successfully.