Suzlon Energy has witnessed a strong relief rally and the stock closed today's session at Rs 58. Traders can expect momentum to continue and Suzlon could soon touch Rs 65, provided the overall market trend remains positive. Suzlon Energy, a leader in India's renewable energy sector, has demonstrated notable price movements, trading between Rs 56.68 and Rs 59.40 in recent sessions. Trading within a 52-week range of Rs 35.60 to Rs 86.04, Suzlon presents both growth potential and inherent volatility. Technical indicators suggest bullish trends, reinforcing its strategic position in India's clean energy transition. JM Financial has suggested BUY Call for Suzlon Energy.

Stock Performance: Key Metrics

Below is a snapshot of Suzlon Energy's recent stock performance:

JM Financial Institutional Securities Maintains 'Buy' Rating on Suzlon with Rs 71 Target Price

Optimistic Outlook with a 24% Upside Projection

JM Financial Institutional Securities has reiterated its ‘Buy’ recommendation on Suzlon, setting a target price of Rs 71 per share, which indicates a potential 24% upside from current levels. The positive stance stems from Suzlon’s record-breaking order book of 5.9GW, reflecting the company’s strong growth trajectory. The firm remains optimistic about the wind energy sector’s revival and anticipates overcoming key execution challenges over the next two to three quarters.

Manufacturing Capacity Expansion and Industry Resurgence
JM Financial acknowledges Suzlon’s strategic initiatives to enhance its production capabilities, particularly in handling higher volumes and larger-rated Wind Turbine Generators (WTGs). The company has embarked on expanding its shop floor area, converting existing warehouses into new hub assembly shops. Additionally, the lifting capacity of EOT cranes in manufacturing and loading areas has been increased, a move aimed at streamlining operations.

As a result of these measures, Suzlon’s manufacturing capacity is expected to increase from 3.15GW to 4.5GW, leveraging facilities at both its Daman and Pondicherry plants. This expansion reinforces the company’s ability to capitalize on growing demand in the renewable energy space.

Revised Earnings Estimates and Adjusted Target Price
Despite Suzlon’s aggressive expansion strategy, execution constraints beyond FY27 remain a concern. JM Financial has moderated its earnings projections, reflecting potential near-term operational hurdles. Consequently, the firm has revised its target price downward from Rs 80 per share to Rs 71 per share, balancing growth optimism with the realities of execution challenges in the evolving market landscape.

Technical Analysis: Market Trends and Price Action

Candlestick Patterns: Bullish Signals
Suzlon’s daily candlestick chart reveals the formation of bullish patterns, suggesting that buying momentum is increasing. A bullish engulfing pattern, observed in recent sessions, indicates that buyers are stepping in, reinforcing the possibility of continued upward movement.

Fibonacci Retracement Levels: Key Trading Zones
Using Fibonacci retracement between Suzlon’s 52-week low (Rs 35.60) and high (Rs 86.04), the critical levels identified are:

23.6% Retracement: Rs 73.36
38.2% Retracement: Rs 66.88
50% Retracement: Rs 60.82
61.8% Retracement: Rs 54.76
The stock’s current trading range near the 50% retracement level of Rs 60.82 suggests it is consolidating around a key support zone, providing a potential foundation for further gains.

Support and Resistance Levels: Critical Price Points
Key support and resistance levels for Suzlon are:

Immediate Support: Rs 56.00
Immediate Resistance: Rs 62.00
A sustained breakout above Rs 62.00 could indicate further upside potential, while a decline below Rs 56.00 may necessitate a cautious approach.

Competitive Landscape: Key Industry Peers

Suzlon Energy operates in a highly competitive renewable energy sector alongside prominent players:

Inox Wind: A key competitor in India's wind energy space, Inox Wind is known for its advanced wind turbine solutions and steady market expansion.
ReNew Power: One of India’s largest independent renewable energy producers, ReNew Power actively contributes to the country’s solar and wind energy capacity.
Both competitors, along with Suzlon, are driving India's clean energy agenda, competing on technological advancements, project execution, and capacity expansion.

Investment Insights: Factors to Consider

Investors evaluating Suzlon Energy should assess several critical aspects:

Growth Prospects: The company’s expansion plans and increasing order book signal long-term growth opportunities.
Technical Strength: Bullish candlestick formations and support at key Fibonacci levels present a potential case for a short- to medium-term uptrend.
Market Trends: The renewable energy sector is gaining strong policy support, which could favor Suzlon’s growth, but execution risks remain.