Suzlon Energy share price hits 5% lower circuit; time to book profit? Here’s what experts say

Profit booking is emerging at Suzlon Energy Stock after a sharp gain in the last few months. Suzlon Energy’s share price hit a 52-week low ₹6.96 on March 28 this year. In about eight months, the stock has risen almost six times or about 494 percent.

Suzlon Energy stock hit a 52-week high ₹44 on November 17 this year.

​​​​Suzlon Energy’s share price gained almost 29 percent in November this year following the news that it may be included in AMFI’s midcap category during the January repositioning. Another contributing factor to last week’s rally was the prospect of Suzlon Energy being added to the MSCI World Standard Index in the upcoming reset on November 15. The renewable energy stock was officially incorporated into the index last week.

Additionally, Suzlon Energy posted a 45 percent year-on-year (YoY) jump in its net profits to ₹102 crore in Q2FY24. However, the company’s revenue declined slightly ₹1,417 crore in Q2FY24 from ₹1,430 crore during the same period last year. Suzlon Energy’s numbers remained positive despite an exceptional loss ₹35 crore during the quarter ending September 2023.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly by 32.6 percent, reaching ₹225 crore as compared to ₹169.7 crore in the previous year. EBITDA margin also increased significantly rising to 15.9 percent from 11.9 percent during the same fiscal quarter.

Also Read: Suzlon Energy Q2 Results: Net profit jumps 45% YoY to ₹102 crore, revenue falls slightly

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Technical experts recommend some profit booking

Technical experts are of the opinion that investors should book some profit in the stock at the current point.

Gaurav Bissa, VP of InCred Equities it has been noted that Suzlon has seen a lot of breakouts at lower levels with strong volumes and recently it has breached major swing highs ₹30.

Although the trend is still positive, momentum indicators like RSI are in overbought zones on the weekly charts suggesting that a slight pullback may be in sight.

“The overall structure remains positive and the stock can test the next hurdle ₹60-62 levels it stays above ₹30 levels. It is recommended to reserve partial profit at the current levels and keep the balance quantity for higher levels keeping a continuous stop loss at ₹30,” Bissa said.

Also read: Stock market today: Yes Bank shares are back after profit booking. Experts see 20% upside in the short term

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers for the last two to three months this counter has been making higher highs and lower lows. The RSI is constantly hovering above the 70 level, which is a sign of a bullish bias.

“One can stop loss ₹40 and ride the bullish move if already bought. Fresh ships are not recommended as the current price action is well above 200 DEMA,” said Patel.

Also Read: Sunteck Realty share price jumps over 5%; Motilal Oswal expects upside of 41%.

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Disclaimer: The above opinions and recommendations are the opinions and recommendations of individual analysts, experts and brokerage firms, not those of Mint. We encourage investors to check with certified experts before making any investment decisions.

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Updated: 21 November 2023, 11:44 AM IST