Suzlon Energy Limited has witnessed a remarkable upswing in its share prices over the last six months, experiencing a 300% increase from ₹7 to ₹29. This surge has transformed Suzlon into one of the standout multibagger stocks in the Indian stock market for the fiscal year 2023-24.
Reasons Behind Suzlon’s Soaring Share Price
Market experts attribute the bull run in Suzlon shares to several key factors, particularly the company’s debt reduction initiatives and recent order acquisitions, which have strengthened its fundamentals and order book.
Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, elaborated on the driving forces behind Suzlon’s impressive performance. He noted, “Suzlon Energy’s share price has skyrocketed over the past five months, currently standing at ₹29.25 compared to ₹8.65 on May 5, 2023, delivering a remarkable 238% return. This surge is primarily attributed to its debt reduction plan, recent substantial orders in the wind energy sector, and positive recommendations from brokerage firms.”
Suzlon Energy Ltd currently boasts a 33% market share in India’s domestic wind energy market, based on total installations. Globally, it operates with 20 GW of wind power capacity, positioning itself ahead of competitors. With an existing order book of 1.5 GW, the company is well-positioned for execution over the next two years. In August 2023, Suzlon Energy secured a significant order for a 201.6 MW wind energy project from Teq Green Power XI, a subsidiary of O2 Power.
Highlighting the fundamentals that are drawing investors to Suzlon shares, Rajesh Sinha added, “Suzlon has successfully reduced its debt by repaying the entire term debt through a qualified institutional placement of approximately ₹2,000 crores. As a result, CRISIL has upgraded its ratings by two notches to BBB+/A2 with a positive outlook.”
Suzlon Share Price Outlook
Sumeet Bagadia, Executive Director at Choice Broking, anticipates further upside potential for Suzlon shares. He stated, “Suzlon shares are in a bullish trend and may reach levels of ₹40 apiece in the medium term once they surpass the current hurdle at ₹35 on a closing basis.” Bagadia advised existing Suzlon shareholders to maintain a trailing stop loss at ₹25 and hold for the aforementioned targets.
For new investors interested in Suzlon shares, Sumeet Bagadia recommended considering entry when the stock approaches its support levels of ₹25 to ₹26, with a stop loss at ₹25, targeting ₹35 and ₹40 in the short and medium term.
Suzlon Share Price History
Suzlon shares hit their low point of approximately ₹7 at the end of March 2023. Since then, the stock has been on a continuous ascent to new heights. As of the end of last week, Suzlon shares closed at ₹29.25 apiece, delivering over a 300% return to its long-term shareholders in the past six months. This remarkable transformation from a penny stock to a multibagger can be attributed to the company’s robust fundamentals, including debt reduction initiatives and positive order acquisitions.
