Suzlon Share Price Soars 2800% in 5 Years: Experts Say ‘Buy’ for Long-Term Gains! Could ₹140 Target Be in Sight?

Suzlon Energy shares have been on a strong upward trend. Over the past year, the stock has gained more than 115%, and in the last five years, it has surged by an impressive 2800%. Despite this massive rally, experts are still recommending it as a “buy.” They believe that the company’s improving financial health and the growth of the renewable energy sector, especially wind energy, will continue to push Suzlon’s share price higher. Experts are predicting that in the long term, the stock could reach ₹140.

Why is Suzlon’s Share Price Rising?

According to Ravi Singh, Senior Vice President at Religare Broking, the main reasons for Suzlon’s share price growth are the revival of the renewable energy sector and Suzlon’s strong position in the wind energy market. Additionally, the company has been working hard to reduce its debt, which has made investors more confident. From a technical perspective, the stock has hit an all-time high, forming a new base and surpassing major moving averages, suggesting there could be further gains ahead.

Sagar Shetty, a research analyst at StoxBox, also highlighted Suzlon’s improved financial health, pointing out that the company reported strong revenue and profit growth, along with its highest quarterly EBITDA in seven years. Suzlon has reduced its debt through debt-to-equity conversions and is now net cash positive. The company’s order book is strong at 3.8 GW, and it is focused on better execution, cost control, and improving its balance sheet.

Suzlon’s Share Price Target

Experts suggest that Suzlon’s solid fundamentals, combined with a favourable technical setup, make it an attractive investment. Investors are advised to hold long positions, with a stop loss at ₹72. This strategy will help protect against losses while allowing investors to benefit from the stock’s ongoing rally. The long-term target for the stock is set between ₹100 and ₹140.

On the technical side, Sumeet Bagadia, Executive Director at Choice Broking, noted that Suzlon’s share price is trading around ₹83 and is showing a strong bullish trend, forming new higher highs and higher lows. The monthly chart shows a rounding pattern, which indicates further growth potential. Bagadia recommends that investors continue holding the stock with long-term targets of ₹100 and ₹140. Short-term traders may consider booking profits at ₹85 to ₹90.

FII Holdings in Suzlon Energy

In the April to June 2024 quarter, foreign institutional investors (FIIs) held a 20.63% stake in Suzlon Energy, highlighting strong international interest in the company.