Just before a year ago people were taking about this fifth largest wind turbine manufacturer would end up becoming a stock that’s not even worth Rs.10?Here its is company made good turnaround and currently trading at 80Rs.Suzlon Energy Limited Case study-300% gain in 1 year-in this article we will see bird eye view of what was bad and what good company did and what is the future?
Suzlon Energy Limited Case study-300% gain in 1 year
Current share price of Suzlon is 80 Rs, which is 300% gain in 1 year. This is indeed a magic done by management we can say.If we see what is gain for last 5 years its almost 1,889.11%.
History:
Suzlon is a leading Indian wind turbine manufacturer.Having presence across 15 countries and It has expanded globally through acquisitions . While government incentives in India have supported Suzlon’s growth, it faces risks from factors such as supply bottlenecks, integration of acquisitions, and increasing competition from China in the wind energy market.
Suzlon’s operations are entirely integrated with a focus on designing, engineering, and development of WTGs (Ashuri et al. 2014). The company’s supply chain is fully integrated with manufacturing facilities spread throughout three continents. Suzlon has managed to gain a competitive advantage with better control over time, cost, quality, long-term customer service and support, and integration of turbine technology.
Important mention of Tulsi Tanti
Shri Tulsi Tanti, Founder, Late Chairman and Managing Director.Lovingly, known as the “Wind Man” of India, in the early 2000s, Shri Tulsi Tanti was a pioneer and visionary in the field of renewable energy. Mr. Tanti’s story is the story of Indian resilience, enterprise, entrepreneurial spirit, and global ambition. Since the founding of Suzlon energy in 1995, Mr. Tanti has been the driving force behind India’s largest wind energy company and the only renewable energy player from a developing nation to rank among the top five worldwide. Shri Tulsi Tanti was widely recognized the world over as a champion of climate change and an expert in renewable energy. ( From Company website)
Key factor for turnaround
Its always the profit of the company which shows the way to go ahead.
From last 4 quarters company is showing very good profit , because of which EPS is also increasing.
Renewable energy sector is on boom and Suzlon being part of wind energy , worked hard to cut down loss and provide good results.
Current situation
As per many experts , now stock is in overbought zone as PE crossed 115. Its almost trading at all time high. Better to wait for opportunity , may be to wait for dip and see fundamentals of company.
As per Economic times expert “The RSI is currently in the overbought zone, indicating the potential for some flat or corrective movement ahead. The price is trading nearly 50% above the 21 EMA and 68% above the 50 EMA,” highlighted Kamble.
Historically, whenever the stock has traded more than 50% above the 21 EMA, it has corrected back towards the 21 EMA.
“The increase in price, accompanied by lower-than-average volume, suggests a possible pause in the trend. Based on this technical analysis, we do not recommend buying at the current level. A “buy on dip” strategy around the Rs 50 level would present a better opportunity,” he recommends.
Fundamentals:
Market Cap₹ 1,08,658 Cr.
Stock P/E-118
Current Price ₹80.4
We used screener.com for checking fundaments. Kindly check this article for more info.
Other Article on Recent News and Research.
Conclusion
Suzlon company works under Wind power industry . This industry has been in existence since the 1980. Renewable energy adoption for power generation has been intensifying every year with the last decade. And independently company is able to provide good quarterly result which is good sign for investors.
As per expert opinion better not to take entry now as its under overbought position. Kindly check fundamentals whenever there is a dip and then take action.
Note: We are not SEBI registered. Kind;y check with your financial advisor for any suggestion.
FAQ
1)What is the Target price of Suzlon?
Expert opinion is about 90 Rs based on quarterly result.
2)What is the future of Suzlon share price?
Future looks bright as its on verge of all time high breakout.
3)Who is Tulsi tanti
Tulsi Tanti was an Indian businessman best known for being the founder and chairman-cum-managing director of Suzlon