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Suzlon Energy Ltd.(SUZLON.NS) has seen a notable surge in its stock price, up by 3.55 % after winning a 302.4MW wind power project in Karnataka under its joint venture with group firm Jindal Renewables. This addition takes the Suzlon order from Jindal Renewables to 702.4 MW, which is the largest commercial and industrial (C&I) order to date. The deal is important as it serves the need of green steel supply in India; a vital ingredient in the country’s push towards a sustainable power generation.
As of today (December 4, 2024), Suzlon’s stock is trading at ₹67.72, up 3.55% from the previous day’s closing price of ₹65.41. The stock has delivered impressive returns, with over 77% YTD, 71.88% over the past year, and a remarkable 3,106.60% over five years.
The proven order backlog remains at a record high 5.4 GW, of which C&I customers represent 56 %. Suzlon’s expected to deliver the 5.1 GW capacity in its order book in the next 18 to 24 months. Further, Suzlon’s manufacturing capacity is expected to rise to 4.5GW by FY25 and a particular emphasis for sustaining healthy margins.
On a balance sheet, the overall portfolio of Suzlon saw a staggering 47.99% growth in revenues generated in Q2, the financial year 2025 compared to the quarter ended in same financial year of the previous calendar. Even its net profit registered a 97.06% rise.
The company’s return on capital employed (ROCE) and return on equity (ROE) are strong, at 24.9% and 28.8% respectively, with a minimal debt-to-equity ratio of 0.06x.
The stock’s 1-year target price is ₹74.83, representing an upside potential of around 10.5% from current levels. Analysts have a consensus "Buy" recommendation for the stock, with some projecting a median target of ₹80.00 over the next year.
To the investors, Suzlon is a good example of a company that has a good growth prospect following the leading market position it occupies in the wind energy sector, a growing order book, and the emphasis placed on continued capacity expansion and improved profitability. However, as it is with any stock, stock price tracking of specific clear levels of resistance and support should be done.
From the daily chart of Suzlon Energy, it is evident that the stock has had a bullish trend for sometime and the price is currently testing the crucial resistance level at $68.04, with potential to push all the way up to $86.04 if the current one breaks.
Suzlon has been on a rise from ₹53.74 to the current price. With the bullish momentum, Suzlon shows a potential breakout. The support level at ₹53.74 held firm, while the resistance at ₹68.04 is being tested now.
If Suzlon breaks above this resistance zone, a continuation toward the ₹86 resistance level could be expected.
It has an RSI of 54.93, which indicates moderate bullish pressure but not yet reaching overbought territory. Taking price beyond the key resistance level could push the price to new highs as bulls’ pressure continues.
At present, Suzlon Energy is in an uptrend with strong bullish sentiment mainly due to its record of high order book and dominance in the renewable energy sector. The stock is showing signs of continued growth because several resistance levels have been breached.
Watch the ₹68.04 level closely for confirmation of a breakout. If this level is breached, it may lead to a move toward ₹85.95. On the downside, ₹53.74 remains a strong support level.
