Power company Suzlon Energy’s share price fell 4.96 per cent to Rs 76.78. At this price, the stock has fallen 9.03 per cent from its one-year high price of ₹84.40, which was seen on Monday, August 13. Despite this decline, the stock has risen by 40.55 per cent in the last one month and 99.53 per cent so far in 2024. The company said in its 2023-24 (FY24) annual report that its order book has reached 3.8 GW by June 30, 2024, the largest since 2017, of which 88 percent (3.3 GW) orders were for Suzlon’s successful 3.x MW S144 series.

Going forward, the company’s focus will be on timely execution of the existing order book and completion of internal and external projects.

With regard to stocks, some analysts have advised a cautious approach in the near term, given the recent rally and high valuation. However, the long-term outlook remains positive for investors.

“We have taken a positive attitude towards Suzlon in the last few weeks,”” said Krant‍i Batini, equity strategy director at Wealthmills Securities.” However, given the recent rally of the stock, there is a need to be cautious in the near-to-medium term. In the long run, management has made strong comments regarding the turnover of the business. Suzlon has a positive attitude due to the central government’s renewable energy initiative. The company’s income remained stable but the profitability has increased. However, currently the valuations seem to be a bit high.”

“Investors with high risk tolerance should consider taking positions in this stock. Those who are already invested should maintain a strict trailing stop loss after the recent bullishness,” Batini added.

“Looking at Suzlon’s historical charts, it still has a long way to go,”” said Kiran Jani, head of technical research at Jainam Broking.” Currently, the stock price has risen from ₹8 to ₹80 in 14 months. We can expect a level increase of ₹90-95. However, the risk-reward ratio at the current price is not favorable. Those who are already invested can maintain their position with a stop loss around ₹60-55. For new investments, wait for some time and wait for the stock to consolidate. Any price correction towards ₹60-70 can be used as an opportunity to add up.”

BSE and NSE have put Suzlon Energy shares under the short-term ASM (Additional Surveillance Major) framework, which warns of high volatility in share prices. The stock is trading below the 5-day simple moving average (SMA) but above the 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day SMA. The 14-day Relative Strength Index (RSI) of the stock is 69.60. A level below 30 is considered oversold while a level above 70 is considered overbought.

The price-to-earnings (P/E) ratio of the company’s stock is 488.15 while the price-to-book (P/B) ratio is 28.97. Earnings per share (EPS) is 0.16 and the return on equity is 5.95 per cent. As of June 2024, promoters hold a 13.27 per cent stake in the company, slightly lower than 13.29 per cent in the previous quarter.