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SUZLON - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 3.6

Stock Code SUZLON Market Cap 57,290 Cr. Current Price 42.0 ₹ High / Low 74.3 ₹
Stock P/E 18.4 Book Value 5.37 ₹ Dividend Yield 0.00 % ROCE 36.2 %
ROE 45.6 % Face Value 2.00 ₹ DMA 50 45.4 ₹ DMA 200 52.6 ₹
Chg in FII Hold 1.03 % Chg in DII Hold -0.91 % PAT Qtr 298 Cr. PAT Prev Qtr 1,328 Cr.
RSI 43.4 MACD -1.38 Volume 6,10,33,264 Avg Vol 1Wk 8,48,27,781
Low price 38.2 ₹ High price 74.3 ₹ PEG Ratio 0.29 Debt to equity 0.01
52w Index 10.7 % Qtr Profit Var -24.1 % EPS 2.28 ₹ Industry PE 33.0

📊 Technical Analysis

  • Chart Patterns: Stock has corrected sharply from highs of ₹74.3, currently stabilizing near ₹42.0 with support at ₹38–₹40 and resistance around ₹45–₹48.
  • Moving Averages: Price (₹42.0) below both 50 DMA (₹45.4) and 200 DMA (₹52.6), confirming bearish trend.
  • RSI: 43.4 — approaching oversold zone, suggesting limited downside.
  • MACD: -1.38 — bearish crossover, momentum negative.
  • Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
  • Volume Trends: Current volume (6.10 Cr) below 1-week average (8.48 Cr), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak, with bearish bias but oversold signals hint at possible rebound.
  • Entry Zone: ₹38–₹42 (support region).
  • Exit Zone: ₹45–₹48 (resistance region).
  • Trend Status: Reversing from uptrend to bearish consolidation.

✅ Positive

  • Strong ROCE (36.2%) and ROE (45.6%).
  • Low debt-to-equity ratio (0.01), financially stable.
  • FII holdings increased (+1.03%).
  • PEG ratio at 0.29, showing attractive valuation relative to growth.

⚠️ Limitation

  • Stock P/E (18.4) below industry average (33.0), but earnings base is weak.
  • Price below both 50 DMA and 200 DMA, confirming bearish trend.
  • DII holdings decreased (-0.91%).
  • Book value (₹5.37) far below current price, suggesting stretched valuation.

📉 Company Negative News

  • Sequential PAT decline (₹298 Cr vs ₹1,328 Cr, -24.1%).
  • Weak 52-week performance (10.7%), underperforming peers.

📈 Company Positive News

  • Strong efficiency metrics (ROCE 36.2%, ROE 45.6%).
  • Low leverage ensures financial stability.
  • EPS at ₹2.28, supported by profitability despite correction.

🌍 Industry

  • Renewable energy sector PE at 33.0, showing higher valuations compared to SUZLON’s lower P/E.
  • Industry supported by government push for clean energy and global demand for wind power.

🔎 Conclusion

  • SUZLON is in a bearish phase, trading below key moving averages.
  • Oversold RSI and Bollinger Band signals suggest potential rebound near ₹38–₹42.
  • Short-term traders can accumulate near support and exit around ₹45–₹48.
  • Long-term investors should be cautious due to profit decline and weak recent performance despite strong efficiency metrics.

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