Shares of Suzlon Energy Ltd have seen a notable 24% increase from their 52-week low over the past five months. However, this rally has not swayed market analysts, who are largely advising caution for investors considering new positions in the renewable energy firm's stock.
The stock is currently trading below its key simple moving averages, indicating a short-term correction, having slipped 10% in the last month. During the latest session, Suzlon Energy shares were down 1.5% at Rs 47.08, with the company's market capitalization standing at Rs 64,700 crore.
Analyst Insights on Suzlon Energy
Technical Outlook from Bonanza
Virat Jagad, Sr. Technical Research Analyst at Bonanza, noted that Suzlon's stock remains weak after breaking the Rs 50–51 support zone and is currently below major exponential moving averages (EMAs). While the Relative Strength Index (RSI) shows signs of recovery from lower levels, the overall trend remains negative.
"Avoid fresh buying; sustained move above Rs 52.5 can improve momentum, while Rs 47 remains crucial support," Jagad advised.
Choice Equity Broking's Perspective
Sachin Gupta, VP – Technical Research at Choice Equity Broking, characterized Suzlon's medium-term structure as neutral-to-bearish on the weekly chart, having formed lower highs since its Rs 86 peak. Gupta identified the most critical support level between Rs 46–48, which aligns with the 50% Fibonacci retracement.
Should this support hold on a weekly closing basis, a recovery towards Rs 52–54, then Rs 56–57, could be possible. The Rs 56–57 range is considered a key resistance, coinciding with the 38.2% Fibonacci level. A decisive weekly close above Rs 56 would significantly improve the chart, potentially opening the path towards Rs 60–65 and eventually Rs 70–75.
Conversely, a sustained break below Rs 46–47 could lead to further declines towards Rs 42–43, followed by major Fibonacci support around Rs 37.9. Gupta concluded that the chart is at a crucial decision point, with Rs 46–47 as key support and Rs 56 as the major breakout level. He recommended caution until Rs 56 is reclaimed.
Nuvama's 'Hold' Rating
Investment firm Nuvama has maintained a 'Hold' rating on Suzlon Energy, albeit revising its price target down to Rs 51 from Rs 56. This adjustment reflects cuts in their FY27/28E EPS estimates by 13% and 10% respectively, due to margin tweaks and increased depreciation and interest costs. Nuvama's target is based on 30x FY28E EPS (encompassing Wind Turbine Generator and Foundry & Forging segments) plus a Discounted Cash Flow (DCF) valuation of its Operations & Maintenance business. Currently, the stock trades at 26 times its FY28E EPS.
About Suzlon Energy
The Suzlon Group is a prominent global provider of renewable energy solutions, boasting approximately 21.5 GW of wind energy capacity installed across 17 countries. Headquartered at Suzlon One Earth in Pune, India, the group operates as a vertically integrated organization with in-house R&D centers in Germany, the Netherlands, Denmark, and India, complemented by world-class manufacturing facilities throughout India.