Suzlon Energy: The company’s shares have been on an upward trajectory in recent years, fueled by the company’s successful order wins in the wind energy sector
Shares of Suzlon Energy Ltd touched their 5 per cent upper price band of Rs 46.23 in Wednesday’s trade
Shares of Suzlon Energy Ltd touched their 5 per cent upper price band of Rs 46.23 in Wednesday’s trade after the renewable energy solutions provider – Suzlon Group – secured new orders. The company today announced new order wins for the development of 402 MW wind energy projects for Juniper Green Energy.
As part of this order, the company will install 134 wind turbine generators (WTGs) with a rated capacity of 3 MW each. The project is located at Fatehgarh in Rajasthan, and projects of this size can provide electricity to nearly 3.31 lakh households. It will also curb nearly 13.07 lakh tonnes of CO2 emissions per year.
These are repeat orders from the customer for the company’s larger rated 3 MW, S144‐140m turbines from the 3 MW product series. As part of the agreement, Suzlon will supply the wind turbines and execute the project including foundation, erection, and commissioning. Suzlon will also undertake comprehensive operations and maintenance services post‐commissioning.
“Juniper Green Energy has been a long‐term, repeat customer for us, and we are delighted to partner with them again. This order helps us expand our footprint in Rajasthan,” said Girish Tanti, Vice Chairman of Suzlon Group.
The stock saw heavy trading volume today as 38.57 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 21.07 lakh shares. Turnover on the counter came at Rs 17.48 crore, commanding a market capitalisation (m-cap) of Rs 62,890.65 crore. There were 8,46,123 lakh buy orders today against sell orders of nil shares.
Bourses BSE and NSE have put the securities of Suzlon under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
On a year-to-date basis, the stock has surged 20%, while it has rallied nearly 400% over the past one year.
Technically, Suzlon Energy’s day RSI (14) is at 64. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 0.1, which is above its center and signal line, this is a bullish indicator. The stock stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day moving averages.
“Suzlon is coming out of a long consolidation with strong volume. The overall structure is bullish as it trades above its all-important moving averages. On the upside, Rs 48 is an immediate resistance where it may see some pause, but above this, it is likely to head towards Rs 50 level. On the downside, Rs 40 is a major support for any correction. Rs 36-38 is the next critical demand zone,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart.
The company’s stock has a negative price-to-equity (P/E) ratio of 1541 against a price-to-book (P/B) value of 18.06. Earnings per share (EPS) stood at (-)0.03 with a return on equity of (-)1.16.
As of March 2024, promoters held a 13.29 per cent stake in the company.
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