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Published: August 16, 2024
Updated: August 16, 2024

Suzlon Energy Shares: A Stormy Weather Ahead for the stock?

Recent Performance: A Mixed Bag

Suzlon Energy shares have been on a rollercoaster ride, falling 9% from their recent 52-week high. The stock settled at Rs 76.78, down 4.96% from its previous close. Despite this, the company has seen a remarkable 40.55% gain in the past month and a whopping 99.53% rise in 2024 so far.

Experts Weigh In: Cautious Approach Advised

Experts suggest that investors should adopt a cautious approach, citing the stock's recent outperformance and stretched valuations. "While the long-term story remains intact, the short- to medium-term perspective looks uncertain," says one expert. "Investors should be cautious and not get carried away by the recent rally."

Technical Analysis: Upside Potential, But Risk-Reward Ratio Unfavourable

Technical analysis suggests that the stock has upside potential, but the risk-reward ratio is unfavourable at current market prices. "The stock has rallied significantly, and it's time for consolidation," says another expert. "Investors should wait for the stock to consolidate before buying."

Company Fundamentals: A Mixed Picture

Suzlon Energy's order book stands at 3.8 GW, the largest since 2017. The company has seen a significant increase in profitability, but valuations look stretched. "The company's fundamentals are strong, but valuations are a concern," says an expert.

While Suzlon Energy shares have shown remarkable growth, the recent fall from their 52-week high raises concerns. Experts advise caution, and technical analysis suggests an unfavourable risk-reward ratio. Investors should carefully consider their investment decisions, weighing the potential upside against the risks involved.