Suzlon Energy share price jumps 10% in March so far; is it still a stock to buy?
Suzlon Energy shares gained nearly 2% on July 13, attracting investor interest after five months of recovery. The stock has increased by 10% in March.
After correcting for five consecutive months, Suzlon Energy share price seems to have come under investors' radar primarily due to valuation comfort. On Thursday, July 13, Suzlon Energy shares rose nearly 2 per cent in morning trade. Considering the current market price of ₹54.80, the stock has jumped 10 per cent in March so far.
Suzlon Energy share price trend
Suzlon Energy shares reached a 52-week high of ₹86.04 on September 12 last year before entering a correction phase. By the end of February, the stock had plummeted over 42 per cent from its peak. However, the stock is still above its 52-week low of ₹35.50, which it hit on March 14 last year.
Suzlon Energy: Is it a stock to buy?
The stock's recent traction came after the company announced on March 4 that it was expanding its largest commercial and industrial order with Jindal Renewables.
As per the exchange filing, the company secured a third order of 204.75 MW from Jindal Green Wind 1 Pvt. Ltd., a subsidiary of Jindal Renewables, further accelerating India's low CO₂ steel revolution.
Taking note of a steep fall in the stock price, brokerage firm Investec initiated coverage on the stock with a 'buy' call, with a target price of ₹70. The brokerage firm believes the company is well-positioned to capitalise on the resurgence in the wind energy sector.
Suzlon Energy shares target price
The company's strong growth prospects and attractive valuation of the stock make Suzlon a compelling long-term buy.
Technical experts also believe the stock has a favourable setup for further upside.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, Suzlon recently rebounded from the S3 monthly Camarilla pivot, a strong support level that indicates buying interest.
"The stock is now sustaining above the R3 resistance, which is a bullish signal. If Suzlon holds above ₹54 for two to three sessions, it could confirm strength and potentially move toward the ₹58 level. This sustained breakout suggests increasing momentum, making it a favourable setup for further upside," said Patel.
"Traders should watch price action closely, as holding above key resistance levels often leads to continued bullish moves. Maintaining support above ₹53.5 is crucial for this positive outlook to remain intact," said Patel.
According to Mandar Bhojane, an equity research analyst at Choice Broking, Suzlon has rebounded from the lower boundary of a descending channel while forming a strong bullish candle candlestick pattern.
This signals a potential reversal, supported by increasing trading volumes, indicating strong buying interest. The stock is attempting a bullish reversal from the bottom, and sustained momentum could lead to further upside movement.
Bhojane pointed out that the Relative Strength Index (RSI) stands at 52.87 and is trending upward, reflecting improving strength and room for further growth.
He believes a decisive move above ₹57 could confirm a bullish breakout, with the next upside target placed at ₹62. This level aligns with previous resistance, making it a key hurdle for the stock.
"Traders may consider entering around ₹54-55, with a stop loss at ₹50 to manage risk effectively. While the stock exhibits bullish potential, short-term volatility remains a concern. Maintaining strict risk management strategies is crucial, as any failure to sustain above key support levels could negate the bullish outlook," said Bhojane.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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