Recently, the company announced it has received India’s largest wind energy order of 1,166 MW from NTPC Green Energy, the renewables arm of NTPC. This order requires Suzlon to install 370 S144 WTGs, each with a rated capacity of 3.15 MW, generating electricity to power 3 million households.
The stock is trading near its all-time highs, and the momentum seems unbroken. Investors might face a dilemma regarding the stock’s future prospects.
“The positives on the Suzlon counter seem to be steadily sustaining, but one must be a little prudent at this juncture,” said Rahul Ghose, CEO of Hedged.in.
On the fundamental side, the last quarter saw good results bringing the toll to 14 consecutive months of positive results, while on the technical side, the stock is seeing a rally with every rally having a small healthy correction before resuming on the upside, which can be considered ideal for a rally to continue.
“The stock still has potential on the upside, 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 just below,” 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 win. Suzlon has secured a PSU order after a long time; previously, 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 charts, the shares of the company have also been in 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 appears poised for further upward movement,” said Ajit Mishra – SVP, Research at Religare Broking.
Mishra advises traders to follow the trend, maintaining a stop-loss at Rs 77, with an upside target of Rs 94-100 levels.
Additionally, Suzlon Energy has entered into an agreement to sell and lease back its prime real estate in Pune for the next 5 years at Rs 440 crore. Following this update, domestic brokerage firm ICICI Securities has raised its target price for the stock to Rs 80 from Rs 70.
The shares of Suzlon Energy were trading 1.5% lower at Rs 83.40 on the BSE around 11 am on Tuesday.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of The Economic Times.)