Suzlon share price jumps 5%, hits 52-week high on second day in a row; should you buy?
Suzlon news: Suzlon Energy's share price jumped nearly 5% to hit a new 52-week high, gaining 132% in 2023. The company recently received a significant order for a wind energy project and has been recommended as a 'buy' by a brokerage firm.
PremiumSuzlon share price jumped nearly 5% to hit a new 52-week high on Tuesday's trading session. For the second straight session today, Suzlon stock set a new 52-week high. Suzlon shares have been steadily rising and have hit fresh 52-week highs. So, far in 2023, Suzlon Energy share price has gained 132%.
Suzlon share price today opened at ₹24.30 apiece on BSE. Suzlon Energy share touched intraday high of ₹24.66 and low of ₹24. As per trendlyne data, Suzlon stock price rose 200.6% and outperformed its sector by 135.6% in the past year.
On Friday, Teq Green Power XI, a division of O2 Power, placed a significant order with the company for a 201.6 MW wind energy project, Suzlon Energy said in an exchange filing.
The company, however, did not disclosed the order value.
For the 201.6 MW wind power project, the company will build 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each, and the project is expected to be commissioned in 2025.
Following the order win, Suzlon Energy shares have been trading higher for the third consecutive session and gained about 14%.
Further, the brokerage house, JM Financial has initiated 'buy' rating for Suzlon Energy with a target price of ₹30 and estimates a potential upside of 38.6%.
The brokerage stated in its report that Suzlon Energy is best positioned to expand its order book (1.5GW/2GW as of Jun'23/Mar'26) and improve project execution (800MW/1500MW in FY24/FY26) benefiting from the industry headwinds due to its leading market share (33%), higher depth of manufacturing (4.5GW), most reliable O&M services (35%+ EBITDA), and technological superiority (3MW sets under testing).
"With a visible bidding trajectory from MNRE, emergence of RTC - C&I segment, upcoming Repowering policy and multiple policy initiatives, the wind energy sector is poised for a decadal growth. As the company is on its way to become net-debt free, we expect the Suzlon to deliver revenue and EBITDA CAGR of 31% and 38% respectively over FY23-26E. We expect Suzlon’s EPS to reach ₹1.4 in FY26
With industry tailwinds in place, a deleveraged balance sheet and a robust order book, we expect a strong pick-up in the company’s performance going forward," said JM Financial in its report.
Should you buy?
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, overall bias remains positive however after such a strong rally buying at the eleavated levels might not be an ideal strategy. Traders can look for a dip to enter with 22. 22.5 seen as support whereas 27 as next resistance.
Ruchit Jain, Lead Research Analyst at 5paisa said that the trend for the stock is positive as prices have witnessed upmove with good volumes recently. The sector is buzzing ans looking at the technical structure, one should continue to ride this momentum.
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