The company recently announced that it has received India’s largest wind power order of 1,166 MW. Green energy from NTPCNTPC’s renewable energy division. This order requires Suzlon to install 370 S144 wind turbines, each with a nominal capacity of 3.15 MW, to generate electricity to power 3 million households.
The stock is trading near its all-time highs and the momentum seems unbroken. Investors could be faced with a dilemma regarding the stock’s future prospects.
“The positives in the Suzlon market seem to be holding steady, but one needs to be a little cautious at this point in time,” said Rahul Ghose, CEO of Hedged.in.
Fundamentally, the last quarter posted good results, bringing the total to 14 consecutive months of positive results, while technically, the stock is experiencing a rally and every rally has a small healthy correction before resuming higher, which can be considered ideal for the rally to continue.
“The stock still has upside potential, but as markets are overheated, one should consider entering only at Rs 78-79 levels, keeping a stop-loss at Rs 75. The stock is in a slightly expensive valuation zone, so short-term gains may be capped around Rs 90 or a little lower,” Ghose added. Global brokerage firm Morgan Stanley has reiterated its overweight rating on the stock with a target price of Rs 73 following the company’s NTPC. Order of victorySuzlon has bagged a PSU order after a long time; earlier, its negative net worth made it ineligible to bid. According to the global brokerage firm, this large contract improves earnings visibility for F26-27 for Suzlon Energy. On the charts, the company’s stock has also been on a steady uptrend since May 2023, following a prolonged correction, rising from around Rs 12 to over Rs 86 during this period.
“After recently concluding a month-long consolidation, it seems poised for further upside,” said Ajit Mishra, senior vice president, research, Religare Broking.
Mishra advises traders to ride the trend, keeping a stop-loss at Rs 77, with an upside target at Rs 94-100 levels.
Besides, Suzlon Energy has signed an agreement to sell and lease back its prime real estate properties in Pune over the next 5 years for Rs 440 crore. Following this update, the national brokerage firm ICICI Securities has raised its target price for the stock to Rs 80 from Rs 70.
Shares of Suzlon Energy were trading 1.5 per cent lower at Rs 83.40 on the BSE around 11 am on Tuesday.
(Disclaimer:The recommendations, suggestions, views and opinions given by the experts are their own and do not represent the views of The Economic Times.)
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