Suzlon Energy Drops 22.90% from 52-Week High: Is a Reversal Coming?

Suzlon Energy’s stock has dropped 22.90% from its 52-week high, settling at ₹66.34 after a 2.64% decline. Despite this, the company reported a 95.72% YoY increase in net profit for Q2 FY25, with a strong order book of 5.1 GW. Technically, the stock faces support around ₹65, with resistance at ₹73.5, and caution is advised due to negative EMA crossovers.

CONTENTS:

• SUZLON ENERGY sees mixed performance.
• Suzlon Energy faces technical bearish trend.
• Suzlon Energy faces technical resistance, caution.

Suzlon Energy Drops 22.90% from 52-Week High: Is a Reversal Coming?

SUZLON ENERGY sees mixed performance

Suzlon Energy Drops 22.90% from 52-Week High SUZLON ENERGY’s share price has dropped 4%, currently trading at Rs 64.0. In the broader market, the BSE OIL & GAS index has decreased by 2.3%, standing at 27,264.9. Some of the notable losers within the BSE OIL & GAS index include Petronet LNG (down 5.1%) and Gujarat Gas (down 3.6%), while Indraprastha Gas has seen a slight gain of 0.6%.

Over the past year, SUZLON ENERGY’s stock has risen from Rs 36.2 to Rs 64.0, a 77% increase. In comparison, the BSE OIL & GAS index has risen 43.8% over the same period, moving from 18,960.3 to 27,264.9. Among the top gainers in the index during the last 12 months are HPCL (up 119.5%), BPCL (up 67.9%), and GAIL (up 65.9%).

Regarding financial performance, SUZLON ENERGY reported a 96.1% year-on-year increase in net profit, reaching Rs 2,006 million for the quarter ending September 2024, compared to Rs 1,023 million a year earlier. Net sales grew by 48.0% to Rs 21,034 million during this period. However, for the full year ending March 2024, the company saw a significant decline of 77.1% in net profit, which stood at Rs 6,604 million, down from Rs 28,873 million in FY23. Revenue for FY24 grew by 9.4% to Rs 65,291 million.

The current Price-to-Earnings (P/E) ratio for SUZLON ENERGY, based on rolling 12-month earnings, is 91.0.

Suzlon Energy faces technical bearish trend

Suzlon Energy Drops 22.90% from 52-Week High On November 8, 2024, Suzlon Energy’s share price dropped by 6.49%, closing at ₹62.50. The stock had opened at ₹66.65 and reached a high of ₹66.65 and a low of ₹61.94 during the day. The Nifty index also fell by 0.21%, and the Sensex declined slightly by 0.07%.

Technically, Suzlon is trading above its 300-day Simple Moving Average (SMA) but below its 5, 10, 20, 50, and 100-day SMAs. Support is seen at the 300-day SMA, while resistance lies at the shorter-term SMAs. Key resistance levels are ₹65.28, ₹67.98, and ₹69.37, while key support levels are ₹61.19, ₹59.8, and ₹57.1.

Volume traded today was 39.80% lower than the previous session, which indicates a weak market sentiment. The technical analysis suggests a bearish trend, and the stock’s fundamental indicators show a return on equity (ROE) of 26.31% and a return on assets (ROA) of 10.40%. The stock has a P/E ratio of 94.43 and a P/B ratio of 20.28.

The 1-year median target price for Suzlon is ₹77.00, reflecting an upside of 23.20%. Regarding institutional holdings, promoter holding stands at 0.00%, mutual fund (MF) holding at 2.02%, and foreign institutional investor (FII) holding has increased from 20.63% to 22.82%.

Today, Suzlon’s performance contrasts with its peers. While companies like Bharat Heavy Electricals and Voltas are seeing declines, others like Thermax and Blue Star are on the rise. Overall, the broader market indices are also down, with Nifty and Sensex showing minor declines.

Suzlon Energy faces technical resistance, caution

Suzlon Energy Drops 22.90% from 52-Week High Suzlon Energy’s stock has experienced a 22.90% drop from its 52-week high of ₹86.04 on September 12, 2024, settling at ₹66.34 after a 2.64% decline. Despite this, the stock has gained 72.40% year-to-date (YTD). The stock is currently trading below its 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs), but above its 150-day and 200-day SMAs.

On the financial front, Suzlon reported a 95.72% year-on-year increase in net profit for Q2 FY25, reaching ₹200.20 crore compared to ₹102.29 crore the previous year. Revenue from operations rose 47.68% to ₹2,092.99 crore. The company’s order book reached an all-time high of 5.1 GW, including the largest wind order from NTPC.

From a technical analysis perspective, the stock is facing support levels between ₹65 and ₹58, with key resistance at ₹73.5. Some analysts suggest that if the stock closes below ₹65, it could target ₹59.5 in the short term. Conversely, if it breaks through the ₹75 level, there may be potential for recovery. The stock is currently in a phase of price and time correction, following a strong rally, with negative crossovers between the 21-day and 50-day exponential moving averages (EMAs) signaling caution.

The stock’s Relative Strength Index (RSI) is at 35.90, indicating that it is approaching oversold territory (below 30). Its Price-to-Earnings (P/E) ratio is 301.55, with a Price-to-Book (P/B) ratio of 23.36, and earnings per share (EPS) of 0.22. As of September 2024, promoters held a 13.25% stake, slightly down from the previous quarter’s 13.27%. Some experts recommend waiting for confirmation of a reversal in trend before considering a bullish stance.