Suzlon Energy stock extends losses for 3rd straight session; multibagger up 800% in 2 years

Analysts are bullish on Suzlon's future, highlighting the company's strong position to compete for PSU tenders, including those from NTPC.

Shares of Suzlon Energy extended their losing streak for a third straight session on September 2, dropping over 4 percent and pushing the company’s market capitalization below Rs 1 lakh crore. This decline comes after a strong rally between May and August 2024, during which the multibagger stock soared 81 percent.

Over the past year, the stock has surged more than 200 percent, quadrupling investors' capital. This impressive rise has been fueled by strong quarterly financial results, strategic debt reduction, and substantial order wins.

Analysts are bullish on Suzlon's future, highlighting the company's strong position to compete for PSU tenders, including those from NTPC. They anticipate Suzlon will secure significant orders in FY25 and beyond, benefiting from reduced competitive pressure.

By the end of Q1FY25, Suzlon Energy's order book hit a record high of 3.8 GW, the largest in its history. The current orders are slated for execution through FY26, with a significant portion expected to be fulfilled in FY25.

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Suzlon Energy expects to commission 5.0 to 5.5 GW of projects in FY25, with plans to increase this to 6.5-7.0 GW in FY26 and further to 8.0-9.0 GW by FY27. Following a robust operational turnaround, both domestic and international brokerage firms have repeatedly raised their target prices on Suzlon with the stock breaching them ahead of time.

In terms of technical, Suzlon has been trading thinly at 36 percent above the mean. The relative strength index shows a negative slope from within the overbought zone, suggesting a waning of price momentum, according to Kushal Gandhi, Technical Analyst, StoxBox.

The stock finds immediate support at its 20-day moving average, currently around 76.20. If it drops below this level, further profit booking could follow, he said.

At 1:07 pm, Suzlon shares were trading 3.8 percent lower at Rs 72.95 on the National Stock Exchange (NSE). The stock has gained around 89 percent so far this year, beating Nifty's returns of 16 percent.

In the past 24 months, the counter has delivered astronomical returns of around 800 percent. In comparison, Nifty rose 44 percent during this period.

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