₹7 to ₹29: Why Suzlon shares surged 300% in six months — explained
Shares of Suzlon Energy Limited have been in uptrend after ushering in new financial year 2023-24. Suzlon shares bottomed out at ₹7.05 apiece levels at the end of March 2023 and since then Suzlon share price has been skyrocketing. In last six months, this penny stock has tunred one of the multibagger stocks of Dalal Street that Indian stock market has delivered in FY24. According to stock market experts, bulls have been betting high on Suzlon shares after the company announced its debt reduction plans. They said that the company has recently received fresh orders that has strengthened company’s order book and fundamentals.
Why Suzlon share price is skyrocketing
Speaking on the reason for bull trend in Suzlon shares, Rajesh Sinha, Sr. Research Analyst at Bonanza Portfolio said, “Suzlon Energy share price has been skyrocketing in the past 5 month to ₹29.25 currently from ₹8.65 on 5th May 2023, giving 238 per cent return. This move is majorly driven by its debt reduction plan, recently received a significant order for a wind energy project and has been recommended as a buy by some brokerage firms.”
Bonanza Portfolio expert went on to add that Suzlon Energy Ltd has enjoyed a market share of 33% in India’s domestic market (based on total installations). It has 20 GW of operational wind power capacity globally and is well ahead of its competitors. Its existing orderbook at 1.5 GW augurs well for execution through the next 2 years. In August 2023, Suzlon Energy bagged a large order for a 201.6 MW wind energy project from Teq Green Power XI, a part of O2 Power.
On fundamentals that is attracting Dalal Street bulls towards Suzlon shares, Rajesh Sinha said, “Suzlon has successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement of ~Rs.2,000Crs. As a result of this CRISIL has upgraded its ratings by two notches to BBB+/A2 with a positive outlook.”
Suzlon share price target
Expecting more upside in Suzlon shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Suzlon shares are in bull trend and it may go up to ₹40 apiece levels in medium term once it breaches its current hurdle placed at ₹35 apiece on closing basis. He advised Suzlon shareholders to maintain trailing stop loss at ₹25 and hold for above-mentioned targets”
On advice for fresh investors in regard to Suzlon shares, Sumeet Bagadia said, “Fresh entry is advised when the stock comes close to its support levels of ₹25 to ₹26 with stop loss at ₹25 for ₹35 and ₹40 targets in short and medium term.”
Suzlon share price history
As mentioned above, Suzlon shares made its bottom at around ₹7 at the end of March 2023. After that it has been climbing to new highs. On Friday last week, Suzlon shares ended at ₹29.25 apiece levels, delivering more than 300 per cent return to its positional shareholders in last six months. In other words, this penny stock has turned multibagger in last six month and company’s string fundamentals like reduction in debt and positive order has played a pivotal role in rise of company shares.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 07 Oct 2023, 08:41 AM IST
