Suzlon Energy shares climb 4% to hit fresh one-year high; here's what analysts say

Shares of Suzlon Energy Ltd on Friday jumped 4.48 per cent to scale their new 52-week high of Rs 56.45. The stock eventually settled 2.68 per cent up at Rs 55.48. At this price, the multibagger scrip has zoomed 217.75 per cent in the past one year.

"The renewable energy sector is going through positive tailwinds at this point of time. Also, Siemens' reported exit from the wind turbine segment can help Suzlon in a medium- to long-term to secure its order book," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Investors with a high-risk appetite should only consider entering, given the recent corporate governance issues. Although, it needs to be mentioned here that the company's balance sheet has been turning in the positive direction," Bathini added.

Last month, Suzlon stated that it appointed Khaitan & Co, an eminent law firm in India, to conduct a review of its corporate governance practices. In addition, the renewable energy solutions provider has been securing new and repeat order wins in the recent past.

On technical setup, support on the could be seen at Rs 52. "The stock looked strong on daily charts. It has potential to hit an upside target of Rs 60 in the near term. Keep stop loss placed at Rs 52," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

Bourses BSE and NSE have put the securities of Suzlon Energy under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 68.77. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 1823.69 against a price-to-book (P/B) value of 21.11. Earnings per share (EPS) stood at (-)0.03 with a return on equity of (-)1.16.

As of March 2024, promoters held a 13.29 per cent stake in the company.