Suzlon Energy Shares Experience Bullish Trend in FY 2023-24, Targeting ₹40 Apiece

Suzlon Energy Shares Experience Bullish Trend in FY 2023-24, Targeting ₹40 Apiece

VoM News Desk | October 20, 2023 | 03:07 PM IST | Breaking News | Follow on Google News

Suzlon Energy Shares Experience Bullish Trend in FY 2023-24, Targeting ₹40 Apiece

Suzlon Energy Shares Experience Bullish Trend in FY 2023-24, Targeting ₹40 Apiece

Suzlon Energy shares have been on a remarkable bull run since the beginning of the financial year 2023-24. They hit their bottom at around ₹7 per share on the NSE in March 2023, and have since surged to approximately ₹32.25 per share during early morning trading on Friday, marking an astonishing 350% growth in the financial year. This surge has taken Suzlon shares to their highest point in nine years, last seen at around ₹32 per share in July 2014.

Reasons for the Uptrend

Stock market experts attribute Suzlon’s rising share price to a combination of factors, including continuous debt reduction efforts and an increasing order book for the company. They believe that Suzlon shares still have room for further growth, and any substantial dip in the stock should be viewed as a buying opportunity. Some experts suggest that Suzlon shares may reach ₹40 per share in the near term.

Continuous Debt Reduction and Rising Order Book

Suzlon’s proactive approach to reducing its debt and securing new orders has been a driving force behind its recent success. The company’s commitment to managing its financial obligations has been well-received by investors, and its growing order book is a sign of strong demand for its products and services.

Suzlon’s Competitive Position

Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, highlights Suzlon’s prominent position in the Indian domestic market, where it holds a 33% market share based on total installations. With 20 GW of operational wind power capacity globally, Suzlon outpaces its competitors. The company’s existing order book, which stands at 1.5 GW, bodes well for its execution over the next two years.

Recent Significant Order

In August 2023, Suzlon Energy secured a substantial order for a 201.6 MW wind energy project from Teq Green Power XI, a part of O2 Power. This order further underscores the company’s growth and potential.

Expectations for Further Upside

Sumeet Bagadia, Executive Director at Choice Broking, expects the bullish trend in Suzlon shares to continue. He predicts that the energy stock may reach ₹40 per share in the near term. However, he also notes that the crucial support level is at ₹26, advising investors to hold the stock and accumulate on significant dips from this point onward.

The combination of debt reduction, a growing order book, and a positive outlook for the renewable energy sector has led to Suzlon Energy’s impressive performance in the financial year 2023-24.

VoM News Desk

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