In Friday's trading, Suzlon Energy Ltd.'s shares carried on with their losing streak for the third straight day. The stock dropped 1.57% to Rs 80.52, the day's low. When I last looked, it was trading at Rs 80.76, down 1.27 percent. The share has now down 6.42 percent from its 52-week high of Rs 86.04, which was reached on September 12 of this month. Despite the aforementioned decline, it has so far increased by 109.72% in 2024, giving investors multibagger gains.
The share price decline today was triggered by news that Suzlon had been lowered by Morgan Stanley from its previous recommendation of "overweight" to "equalweight." The international brokerage has increased its target price to Rs 88 per share from Rs 73 previously for the shares of the provider of wind energy solutions.
"Over the last half-year, Suzlon has increased by 120%, surpassing Nifty by 93%. This may be attributed to a robust order book growth and enhanced balance sheet and operational cash flow. However, we currently view risk and reward as being more evenly distributed, and we would wait for greater execution in comparison to our base scenario before becoming more positive once more," it said.
In terms of technical analysis, the counter moved up against the 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs) but down against the 5- and 10-day SMAs. The stock's relative strength index (RSI) over the last 14 days was 54.37. Oversold is defined as a level below 30, while overbought is defined as a number beyond 70.
The company's stock, according to BSE, has a price-to-book (P/B) ratio of 30.87 and a price-to-equity (P/E) ratio of 520.07. Return on equity (RoE) was 5.95 and earnings per share (EPS) was 0.16.
"Rs 78 will be the support and Rs 83 the resistance." A strong closing over Rs 83 might lead to more gains above Rs 86. Short-term trading is anticipated to be in the area of Rs 76 and Rs 86, according to Anand Rathi's Senior Manager of Technical Research Analyst Jigar S. Patel.
"The daily charts for Suzlon Energy show a negative price trend with significant resistance at Rs 86. The short-term objective of Rs 68 might be reached if the daily close drops below the support level of Rs 79, according to research analyst AR Ramachandran, who is registered with Sebi.
At the time this report was written, almost 22.40 lakh shares had traded hands on the BSE today. The amount was less than the 69.19 lakh share two-week average. With a market capitalization (m-cap) of Rs 1,10,727.50 crore, the counter had a turnover of Rs 18.25 crore.
Promoters owned 13.27% of the firm as of June 2024, a little less than the 13.29% they had as of the prior quarter.
