Suzlon Energy Ltd. is a global market leader in providing renewable energy solutions by specialising in the manufacture and installation of WTG. By turning to this company, end-to-end services including the planning, execution, and maintenance of projects are made possible in the green energy landscape. As close observation of the dynamics in the energy sector takes place, critical insights can be drawn from the share price of Suzlon.
On 4 November 2024, Suzlon opened at ₹68.14 and closed lower at ₹65.47 with a loss of 3.92%. The stock hit a high of ₹68.16 and a low of ₹65.22 in the session. The price movement occurs during a period of broader market decline where Nifty has fallen by 1.57% and Sensex by 1.59%.
The current share price is at ₹66.48. The past year has seen a fluctuation in the stock of Suzlon with a high of ₹86.04 and a low of ₹33.90. At ₹89,622 crores, the market capitalisation of Suzlon portrays the enormous stature the firm has in the renewable sector.
The P/E of the stock is 90.9. Its book value is ₹3.32. Since no dividend is offered by the company, good fundamentals have been observed here as its ROCE and ROE stand at 24.9% and 28.8% respectively. This means Suzlon uses its capital pretty well in earning profits, an indicator of a good deal for any investor.
Technically, Suzlon trades above its 300-day simple moving average which indicates the long-term trend is bullish. However, it trades below its other shorter moving averages for the last 5, 10, 20, 50, and 100 days. Such a scenario can indicate mixed-up feelings within the market; it would face some resistance coming from the near-moving averages and support from the far 300-day average.
The traditional pivot level analysis indicates that the near resistance levels are at ₹68.03, ₹69.10, and ₹69.77. The key support levels on the downside are at ₹66.29, ₹65.62, and ₹64.55. Monitoring these levels can be of immense value to the investor in the short-term price action.
Trading Volume Insights
Most often, the indicator also reflects the market sentiment that trades follow. From the information that comes out today, the volumes on the National Stock Exchange and Bombay Stock Exchange for Suzlon declined by 71.46% compared to the previous session. As such, low volumes of trades during a price decline tend to suggest weak sell-pressure, which remains the main impression investors should be cautious about.
In short, the bearish trend that occurred today is in favour of a bearish opinion according to Mint's technical analysis. The failure of the stock to hold it in an upward direction as it is falling calls for a careful watch of the price action going forward.
A picture that appears a bit jumbled presents Suzlon from a very mundane point of view. In terms of market cap, it stands at ₹89,958.85 crores with an enterprise value of ₹90,331.90 crores. The outstanding share stands at about 1,364.67 crores. P/E now stands at 296.4 while P/B of 23.17 presents the picture that the market does see more future growth.
Although the sales growth rate is 7.51%, which shows some promising trends, the growth in profits is alarming -95.68%. The sheer drop in profits does not let a person feel confident about the operational efficiency of the company and whether this curve of growth is sustainable.
Shareholder dynamics In terms of promoter holding, Suzlon stands at 13.25%. For MF, holdings have eroded from 2.12% in the June quarter to 2.02% in the September quarter. FII, on the other hand, increased in the same period from 20.63% to 22.82%. Growth in FII suggests comfort among international investors, where they may feel that long-term viability in Suzlon is possible.
Suzlon has a target price of about ₹77.00. The one-year forecasted upside for its shares is 17.61%. A consensus based on forecasts within this group indicates the renewable energy sectors that are experiencing the drive caused by rising demand in other parts of the world to use clean energy solutions have growth potential within broader market expectations.
Suzlon Energy Ltd. is one of the most interesting cases in the renewable energy sector. It has opportunities and challenges both. The current market price reflects a significant fluctuation in terms of broader market trends. Investors should consider both technical and fundamental indicators to gauge the stock's potential effectively.
Further illumination of market sentiments can be provided through trading volume dynamics and dynamics in shareholder compositions. A trend toward more sustainable energy will further thrust Suzlon into greater limelight. This will raise the stock's stature in the next couple of years. However, upcoming developments should be monitored so that investors are navigated through this emerging complexity in their landscape.