Suzlon Energy share price in focus after fresh order win from NTPC, 15% rally in two weeks. Is it a stock to buy?

Stock market today: Shares of renewable energy firm Suzlon Energy hogged the limelight in trade on Wednesday, April 23, after it bagged a new mega order of 378 MW from NTPC Green Energy, consolidating its partnership with the company.

“Furthering its strategic focus on building long‐term, high‐impact partnerships, Suzlon has just consolidated its largest partnership with NTPC Green Energy Ltd. (NGEL) to 1,544 MW, with a recent award win of a 378 MW wind energy project. This win strengthens Suzlon's undisputed market leadership and commitment to sustainable, large‐scale growth,” Suzlon Energy said in an exchange filing today.

As part of the contract, Suzlon will supply 120 S144 Wind Turbine Generators (WTG) with Hybrid Lattice Towers (HLT), each with a rated capacity of 3.15 MW, and also undertake foundation, erection, and commissioning for the project and will provide maintenance and services.

This is the second order win for the company in less than a week. Earlier on Thursday, April 17, Suzlon Energy had bagged a 100.8 MW wind order from Sunsure Energy.

Suzlon Energy Share Price Trend

Despite this update, shares of Suzlon Energy continued to languish in trade on Wednesday, defying the strong trend in the Indian stock market.

Suzlon Energy share price, after opening marginally higher at ₹59.61 a piece, faced some profit taking after a sharp rally seen in the company's stock over the past two weeks.

Suzlon Energy stock hit the day's low of ₹58.12, down nearly 2% from its previous closing price of ₹59.29 apiece. As of 10.28 am, the stock was trading 1.08% lower at ₹58.65.

However, the stock has recorded strong gains in the short term, rallying 15% in the past two weeks. In the last one year, Suzlon Energy stock is up 41% while it has delivered multibagger returns of 2121% in the past five years.

Suzlon Energy Share Price Target

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said Suzlon has formed a triple bottom near the key support of 50.6 and broken out of its lower high–lower low structure by crossing the 59.5 swing high.

The bullish breakout came with volumes of over 2x the 50-day average, hinting at institutional participation, said the expert.

"The immediate resistance is placed at 65.6, which is also the logical target for the current setup. As long as it holds above 59.5, momentum traders can ride the move toward 65.6," Jain added.

Meanwhile, Milan Vaishnav of Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services, expects a strong momentum in the stock once it breaks past the ₹64 level.

"SUZLON has been in a sideways trading range cum consolidation for the last several weeks. In the process, it trades between the ₹54-64 range and has formed a rectangle on the charts. While it stays under overall corrective decline following formation of its peak in September last year at ₹86, presently it stays devoid of directional bias and stays in a range," Vaishnav said.

He added that with the 200-DMA placed at 64, the level also acts as a proxy trendline for the stock. A definite upward directional bias would emerge only after the stock takes out Rs. 64 on the upside, Vaishnav said, adding that supports are placed at the 57 and 55.50 levels.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.