Suzlon Energy share price surges 10%, jumps 21% since March— should you buy now?

Suzlon Energy share price surged 9.5 per cent on the BSE on Monday, April 21, extending its gains for the second consecutive session. Suzlon Energy share price has gained traction after the company announced securing a 100.8 MW EPC (engineering, procurement, and construction) wind power order from Sunsure Energy.

Suzlon Energy share price opened at ₹55.58 against its previous close of ₹55.08 and jumped 11 per cent in intraday trade to the level of ₹61.10. Finally, the stock closed 9.50 per cent higher at ₹60.31.

Suzlon Energy share price trend

Suzlon Energy share price has seen healthy gains over the last few weeks. Since March, the stock has jumped 21 per cent, gaining nearly 7 per cent in April so far after a 14 per cent rise in March.

Over the last year, the stock has jumped 53 per cent, hitting a 52-week high of ₹86.04 on September 12 and a 52-week low of ₹37.95 on May 13 last year.

Suzlon Energy wind order details

In an exchange filing on April 17, Suzlon said it had secured a 100.8 MW EPC wind power order from Sunsure Energy, marking its maiden foray into wind energy. The project is set to be executed in Maharashtra’s Jath region.

"Under this agreement, Suzlon will supply 48 state‐of‐the‐art S120 wind turbine generators (WTGS) with Hybrid Lattice Towers (HLT), each rated at a 2.1 MW capacity. It will supply the wind turbines, oversee equipment installation, and execute the project, including erection and commissioning, while providing comprehensive operations and maintenance services post‐commissioning," said the company, adding that this project will enhance Sunsure Energy’s renewables portfolio and support its goal of delivering Round‐The‐Clock power to customers in Maharashtra.

Retail investors increase stake in Suzlon

According to the exchange filing, retail investors now own a 25.12 per cent stake in Suzlon Energy, a rise from 24.49% at the end of the December quarter. Foreign portfolio investors (FPIs) maintained their stake in Suzlon Energy at roughly 23 per cent. However, domestic mutual funds in India decreased their holdings in the company during the March quarter to 4.17 per cent, down from 4.44 per cent in December.

Should you buy Suzlon stock?

Experts appear positive about the stock for the medium to long term, as well as the company's growth prospects and comfortable valuation.

Atul Parakh, CEO of Bigul, underscored that the Q3FY25 earnings showcase a compelling turnaround for Suzlon.

"A record order book fuels future revenue visibility, supported by significantly ramped-up manufacturing capacity and robust delivery growth. Improved financial performance, evidenced by substantial increases in revenue, EBITDA, and PAT, highlights enhanced operational efficiency," Parakh observed.

"Strategic focus on high-margin, non-EPC orders with land availability mitigates industry-wide commissioning challenges. Positioned in a high-growth renewable energy market with strategic initiatives for diversification and potential exports, Suzlon's outlook appears strongly positive despite existing sector headwinds," Parakh said.

Suzlon's Q4FY25 results are expected in the coming weeks.

Technical experts are also largely positive about the stock. 

According to Hardik Matalia, a derivative analyst at Choice Broking, Suzlon is on the verge of breaking out from its consolidation range, following a significant decline of nearly 46 per cent from its previous high.

Matalia pointed out that after this steep correction, the stock formed a base near its lower levels, attracting strong buying interest, which led to a steady recovery and a potential breakout setup.

Matalia said Suzlon's price action indicates it is preparing to move higher, with immediate resistance seen near ₹62. A decisive and sustainable move above this level would confirm a breakout from the ongoing consolidation and could set the stage for a near-term rally towards the ₹70 zone.

"The stock has bounced sharply from its support levels and is now trading above its short-term, medium-term, and long-term EMAs. This alignment of moving averages reflects strengthening bullish momentum and supports the case for a trend reversal from current levels," said Matalia.

The Relative Strength Index (RSI) is hovering around 60.80, trending upwards with a positive crossover, suggesting improving strength and growing buying momentum.

"For short-term traders, current levels offer an attractive buying opportunity, especially as long as the stock sustains above the key support at ₹55. A breakout and hold above ₹62 would add further conviction for a continued upward move," said Matalia.

"Long-term investors can also consider accumulating the stock gradually, with any dips providing a good opportunity to build positions, backed by the improving technical structure and signs of a reversal," Matalia said.

However, some experts point out that the stock is trading near its key resistance, so one can consider booking some profit.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, underscored that at the current juncture, the price is hovering near the resistance level of the R3 Camarilla monthly pivot, situated around the ₹60 mark.

"Although the overall chart structure remains bullish, it would be prudent to wait for a decisive daily close above ₹60 to confirm the continuation of upward momentum," said Patel.

"Given the proximity to this key resistance, partial profit booking in the ₹58– ₹60 zone could be considered a sensible approach," Patel said.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.