Suzlon shares crash over 20% in six months but experts predict a strong rebound - here's why | Target price, stop-loss
Suzlon share price target | Stocks to buy today: Shares of Suzlon Energy Ltd witnessed selling pressure during the early morning dealings on Monday. Suzlon share price today opened with a downside gap at ₹41.58 per share on the NSE and touched an intraday low of ₹40.83 apiece within a few minutes of the Opening Bell, clocking around 3% dip on Monday. Even though Suzlon shares are among the beaten-down stocks on Dalal Street, having shed over 20% in six months, market experts are predicting a re-rating in the stock, provided the green energy stock controls its expenses and provides some extra breathing room for profit margins.
According to stock market experts, Suzlon Energy shares witnessed a re-rating when it exited the group of loss-making companies and became profitable. Now, the market is waiting for a sharp improvement in the company's margins. They said that it can become possible once the company controls its higher expenses. Experts believe that Suzlon Energy Ltd is expected to contain its expenses, which would trigger a re-rating in the stock. They advised long-term investors to make the most of these dips and accumulate Suzon shares in one's portfolio. They predicted limited downside in Suzlon shares as the average weighted price of Suzlon shares fell to the ₹38- ₹40 band.
Highlighting the reasons that are dragging Suzlon Energy's share price, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "Suzlon Energy shares witnessed the first round of re-rating when it became a profitable company, snapping the tag of a loss-making company. This event has been discounted, and the market is waiting for the next round of re-rating, because a company's margins improve once it becomes a profit-making company, leaving the losses in the balance sheet far behind.”
The SMCC Global expert said the market expects Suzlon to contain its expenses, giving some extra room for its profit margin. Once it becomes visible in the company's balance sheet, it would be enough to trigger the second round of re-rating.
Seema Srivastava of SMC Global Securities listed three major reasons to buy Suzlon shares: potential re-rating buzz, limited downside risk, and soaring demand for green energy products as crude oil prices remain elevated.
Highlighting the limited downside possibility in Suzlon Energy shares, Mahesh M Ojha, VP — Research and Business Development at KC Securities, said, “Suzlon shares are one of the beaten-down stocks of Dalal Street. It has corrected 25% in one year and around 22% in YTD. So, there is limited scope for mode correction, as the stock is already at a discounted price. One needs to remember that the weighted average of the stock price after the stock's rerating is around ₹38- ₹40. So, chances are high for the long-term investors to keep faith in Suzlon shares.”
Advising stock market investors to buy Suzlon Energy shares at the current market price, Mehul Kothari, Deputy Vice President — Technical Research at Anand Rahi, said, “Suzlon shares have strong support at ₹38. Existing shareholders are advised to hold the scrip, maintaining a stop-loss at ₹38 for the immediate target of ₹46.”
Mehul Kothari of Anand Rathi said that a fresh investor can also buy and hold the scrip for the same upside target, maintaining the stop-loss at ₹38.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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HomeMarketsStock MarketsSuzlon shares crash over 20% in six months but experts predict a strong rebound - here's why | Target price, stop-loss
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