Shares of Suzlon Energy Ltd are witnessing decline for the 5th consecutive session. The stock fell 9.26 percent to the day’s low of Rs 53.89 during intraday. Based on this price, the stock has registered a decline of 22.25 percent in 5 trading days. Now the question is, how much more can the stock fall or at what levels can it bounce back?
Some analysts maintained a mostly ‘negative’ stance on the stock. Aditya Agarwal, co-founder and head of research and investments at Invest4edu, says Suzlon is still trading at premium valuations at current levels. All renewable energy stocks have suffered a major blow since Donald Trump won re-election in the United States. There is a negative outlook on all these renewable energy companies and stocks, especially solar panel companies. Even though Suzlon Energy Ltd is a wind energy company, I think there could be some further downside.
Aditya Aggarwal says do not be in a hurry to buy or average. It may be a good idea to buy around Rs 50 or when the stock stabilizes a bit and then shows a bounce. Experts say that we cannot see a target of Rs 100 soon, our target will be around Rs 80-85 per share.
Talking about Trump, he does not support the renewable energy sector and he had claimed to stop renewable energy projects on the very first day of his possible presidential oath taking.
StoxBox technical analyst Kushal Gandhi advises to ignore this counter in the near future. Gandhi says that the current corrective phase is seeing volatile movements and high sales volumes and there are no signs of a correction based on price action. We recommend not buying Suzlon at the current market price as it is at a turning point.
Recently, Suzlon’s new business CEO Ishwar Chand Mangal resigned after being associated with the company for 28 years. In terms of income, the renewable energy solutions company has registered a growth of 95.72 percent in its conso net profit in the second quarter of the financial year 2024-25 (Q2 FY25). As of September 2024, promoters held 13.25 per cent stake in the company, down slightly from 13.27 per cent in the previous quarter.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.