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.
Why is the Suzlon Energy share price falling?
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.
Suzlon Energy share price | 3 reasons to buy
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.
Suzlon Energy share price target
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.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
