The story of wind power and renewable energy in India showcases the nation’s adaptability and foresight in recognizing the importance of sustainable energy sources. With the rising needs of a vast population and an ever-growing economy, India’s traditional energy resources started showing their limitations in terms of scalability and environmental impact. This scenario necessitated the exploration of renewable energy solutions, with wind power emerging as a promising source. The inception of wind power in India dates back a few decades. However, its significance grew multifold at the turn of the 21st century. Amidst growing concerns over global warming, environmental degradation, and the evident consequences of climate change, the search for clean and sustainable energy sources intensified. India, with its vast coastline and geographical diversity, recognized its potential to harness the power of wind to meet its energy demands.
Amid this, Suzlon Energy Limited emerged as a symbol of innovation and leadership. Founded in 1995, the Pune-based company began its journey at a time when wind energy was still finding its feet in the Indian market. With an impressive track record, global presence, and dedication to innovation, Suzlon Energy Limited continues to be at the top of India’s wind power revolution, aiming to achieve a cleaner, greener tomorrow. However, Suzlon share price witnessed a heavy decline since its skyrocketing trend, leaving investors questioning its recovery this year. In this article, we’ll explore Suzlon share price’s market performance and future price potential with in-depth technical analysis.
Suzlon: Early Days
Founded in 1995 by Tulsi Tanti in Pune, India, Suzlon Energy Limited started its journey amidst the energy deficit that India faced during that period. Tanti realized that a sustainable solution to the energy crisis would be the utilization of wind energy. With this insight, he pivoted his family’s textile business to focus on wind energy, marking the genesis of Suzlon.
From its earliest endeavors, Suzlon’s commitment was evident. They commenced by installing two wind turbines in the state of Gujarat, India. Over the next two decades, this commitment bore fruit as the company expanded rapidly, not just domestically but also internationally.
In 2003, Suzlon secured its inaugural order in the USA from DanMar & Associates, which involved supplying 24 turbines in southwestern Minnesota. That same year, they established an office in Beijing.
By 2006, the Suzlon Rotor Corporation started manufacturing blades in Pipestone, Minnesota, with the Wind Capital Group being one of its notable clients. In a strategic move in 2006, Suzlon inked a deal to acquire the Belgian company, Hansen Transmissions, known for their wind turbine gearboxes, at a cost of $565 million. A year later, in 2007, Suzlon acquired a majority share in Germany’s Senvion (previously known as REpower Systems), valuing the entity at approximately US$1.6 billion.
Suzlon Energy: Expansion And Dominance
In June 2007, Suzlon entered into a contract with the US-based Edison Mission Energy (EME) for supplying 150 wind turbines, each with a capacity of 2.1 megawatts, for 2008. An additional order for 2009 was provisionally agreed upon, though EME later opted out of this arrangement.
In November 2009, aiming to restructure its debt, Suzlon decided to divest a 35% share in Hansen, generating $370 million. The company engaged Bank of America Merrill Lynch and Morgan Stanley to oversee this financial maneuver.
By January 2011, Suzlon had secured an impressive $1.28 billion contract from Caparo Energy Ltd’s Indian affiliate. This order pertained to the construction of wind energy projects with a total capacity of 1000 megawatts. May 2011 saw Suzlon making a financial recovery, marking its return to profitability following the 2009 economic downturn.
In October of the same year, Suzlon proceeded to offload its residual 26.06% stake in Hansen Transmissions International NV, selling to ZF Friedrichshafen AG for a sum of ₹8.9 billion (or US$110 million). Concurrently, Suzlon achieved complete ownership of its German subsidiary, REpower Systems (currently known as Senvion), by purchasing the outstanding 5% stake from minority shareholders. The full takeover, which was valued at EUR 63 million, was executed through a squeeze-out process.
In 2012, Suzlon was due to clear foreign currency convertible bonds (FCCBs) worth 500 million in two phases: 300 million in June and the remaining 200 million in October. Reflecting its strategy to sell non-core assets to minimize long-term debt, the Chairman of Suzlon revealed plans to divest its stake in its China manufacturing unit. The stake was sold to China Power New Energy Development Company Limited for an amount of 3.4 billion rupees (equivalent to $60 million).
By FY16, Suzlon’s total borrowings had reduced to ₹11430.76 crore, a significant drop from ₹17810.96 crore in FY15. An admirable milestone was achieved by Suzlon Energy on 17th January 2017 when it successfully installed wind energy mechanisms capable of producing 10,000 megawatts in India. This installation can power over 5 million homes yearly, reducing carbon dioxide emissions by around 21.5 million tonnes. This eco-friendly impact is equivalent to planting in excess of 1500 million trees.
Suzlon boasts a global installation of over 17,000 MW of wind power across 18 different nations. In India, the company has achieved over 11,000 megawatts of cumulative installations. Across 40 sites in eight Indian states, they have integrated more than 11,000 megawatts of wind power capacity for over 1,700 clients. Impressively, Suzlon’s contributions make up almost a third of India’s entire wind installation capacity.
Suzlon Share: Price History
Established in 1995, Suzlon rapidly evolved from a homegrown entity to a global powerhouse in wind energy. Its initial public offering (IPO) in 2005 brought a robust business model and potential. Debuting at a promising ₹123, it garnered significant interest from institutional and retail investors.
The price skyrocketed from this level and broke above ₹160 by 2005’s end. The years 2006 to 2008 saw Suzlon’s share price soaring, with it touching an all-time high of INR 380 in January 2008. These were the golden years, mirroring its acquisitions, global outreach, and increasing capacity installations. The global thrust towards sustainability further augmented its value proposition.
However, just as the wind doesn’t always blow in one’s favor, Suzlon started facing challenges. The global economic downturn of 2008 hit several sectors, including renewables. With mounting debts and a few operational hiccups, the share price began a descent. The price witnessed a freefall, and by 2012, from the massive heights of 2008, the stock was trading around the INR 40 mark.
A significant portion of Suzlon’s challenges stemmed from its debt accrued due to aggressive acquisitions and expansion. To mitigate this, the company undertook various measures, including selling stakes in certain assets. For instance, the divestment of Senvion in 2015 was a strategic move to alleviate debt pressures. Despite these efforts, the share price continued its fluctuation.
In the early 2020s, with a renewed global emphasis on sustainable energy sources and India’s aggressive renewable energy targets, Suzlon’s operational narrative showed signs of positive change. However, the share price remained volatile, trading between INR 3 to INR 7 by the end of 2020.
However, the price started showing a strong recovery rally in 2021 as it witnessed upward volatility from bulls. In mid-2022, the Suzlon share value climbed above INR 10 and continued its recovery rally, accelerating its momentum in 2023’s first half.
Suzlon Share Price: Technical Analysis
Recently, the Suzlon share price experienced a solid bullish trend, which has brought more buyers near the immediate resistance levels. The price has been on a steady upward trajectory since May’s recovery rally. After breaking above the ₹12 mark, Suzlon shares sparked an intense buying momentum and surged exponentially. The market was previously heavily influenced due to poor performance, covid pandemic; however, Suzlon showed a strong recovery, as seen on the daily price chart, and maintained its price momentum. Despite facing intense bearish domination in the past, Suzlon’s share has managed to display an uptrend and is now well above the bearish territory. A thorough technical analysis of Suzlon’s share price reveals bullish indicators, which may soon send the price to new resistance levels.
According to TradingView, the Suzlon share price is currently trading at ₹20.2, reflecting a decrease of 1.22% in the last 24 hours. Our technical evaluation of Suzlon’s price indicates that the current bullish momentum may soon fade as bears are attempting to reverse the trend from immediate resistance at ₹20; however, bulls are trying to prevent the price from dropping below the breakout level of ₹12. Examining the daily price chart, Suzlon’s share price has found support near the ₹13.5 level, from which the price gained bullish momentum and broke above multiple Fib channels. As Suzlon’s price continues to trade above the EMA20, bulls are gaining confidence to open further long positions and send the stock price to test its upcoming resistance. The Balance of Power (BoP) indicator is currently trading in a negative region zone at 0.38 as sellers dominate near ₹20.
To thoroughly analyze the price of Suzlon’s shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a surge as Suzlon’s price made an upswing. The trend line once touched the overbought region but failed to hold further as bears began their domination. However, the RSI level trades at level 62, hinting that further upward correction is on the horizon. It is anticipated that Suzlon’s share will soon attempt to break above its 23.6% Fibonacci level to achieve its short-term bullish goals. If bears fail to plunge below the current 0.038 Fibonacci region, an uptrend above ₹21 might be on the horizon.
As the SMA-14 continues its upward swing by trading above 55-level, it trades slightly below the RSI line, potentially holding promises of the stock’s upward movement on the price chart. If Suzlon’s shares continue to surge, it can pave the way to resistance at ₹30. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹37.
Conversely, if Suzlon fails to hold above the critical support level of ₹17, a sudden collapse may occur, resulting in further price declines and causing the Suzlon shares to trade near the Bollinger band’s lower limit of ₹12. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹8.
Suzlon Share Price Prediction By Blockchain Reporter
Suzlon Share Price Prediction 2023
In 2023, Suzlon’s share price is anticipated to average around ₹12. The potential low for this year might be ₹8, with an optimistic high touching ₹25. The projection is based on global transitions towards sustainable energy, policy incentives, and Suzlon’s strategic ventures in this arena.
Suzlon Share Price Prediction 2024
Come 2024, Suzlon’s average share price is expected to climb to ₹25. Investors could see a minimum price of around ₹20, while on the higher end, the shares might appreciate to ₹40. These figures mirror anticipated growth in wind energy adoption and an aggressive expansion strategy by Suzlon.
Suzlon Share Price Prediction 2025
By 2025, Suzlon’s shares may well oscillate with an average price of ₹40. The floor might be set at approximately ₹30, while the ceiling could reach ₹55. This period could be marked by significant innovations in wind turbine technology and more countries pledging green energy transitions.
Suzlon Share Price Prediction 2026
In 2026, it’s projected that Suzlon’s average share price will escalate to ₹55. A conservative estimate might place it at ₹45, but buoyant market conditions could push it to an impressive ₹70. This uptick can be attributed to potential government subsidies and global partnerships.
Suzlon Share Price Prediction 2027
Heading into 2027, we anticipate an average share price of ₹70 for Suzlon. The stock might see lows of ₹60, but a bullish market could see it peak at ₹85. Strategic mergers or acquisitions and favorable renewable energy policies could be key drivers.
Suzlon Share Price Prediction 2028
By 2028, Suzlon’s share price is expected to hover around an average of ₹85. The stock might trade at a minimum of ₹75, with potential highs stretching to ₹100. Global emphasis on carbon neutrality and continued technological advancements could play pivotal roles in this bullish scenario.
Suzlon Share Price Prediction 2029
In 2029, the momentum continues with an anticipated average price of ₹100 for Suzlon’s shares. Prices might not dip below ₹90 and, in a positive economic climate, might rally to ₹115. The company’s sustained growth and diversification strategies might fulfill these predictions.
Suzlon Share Price Prediction 2030
Rounding off the decade, 2030 could see Suzlon’s average share price at ₹115. The potential low could be ₹105, while optimistic market sentiments might propel it to ₹130. This period could reflect the global realization of renewable energy targets and Suzlon’s stronghold in the market.
Suzlon Share Price Forecast: Experts’ Opinions
Vaishali Parekh, the Vice President of Technical Research at Prabhudas Lilladher, anticipates that the Suzlon stock might reach the Rs 25 mark if the current rally momentum persists.
“We’ve observed a resurgence in the stock’s momentum, complemented by substantial volume activity,” Parekh comments. “It’s breaking from its previous range, hinting at a potential upward shift soon. The RSI suggests a robust trend and hints at the continuation of this momentum. Given the current support around the Rs 18.50 area, we can look forward to targets of Rs 22 and potentially Rs 25 if the strength remains.”
Sharing a slightly varied perspective, AR Ramachandran of Tips2trades mentions, “Suzlon Energy displays a bullish trend, but the daily charts indicate it’s overbought, with the next resistance point at Rs 20.95. Should there be a daily closure below the Rs 18.3 support, the stock might recede to Rs 15 in the foreseeable future.”
Suzlon Energy Receives Shareholders’ Approval; Price Gets A Boost
On 8 August, Suzlon Energy, a provider of renewable energy solutions, announced that it had secured approval from its shareholders to raise funds through a Qualified Institutional Placement (QIP). “In line with Regulation 30, combined with Schedule III(A)(13) of the Listing Regulations, we’d like to update that our shareholders have granted approval to the resolution presented by the company via a Postal Ballot Notice dated 7th July 2023,” the company mentioned in a statement to BSE.
Earlier, on 7 July, the firm’s board had greenlit a plan to amass up to ₹2,000 crore. Suzlon Energy further detailed in a BSE report that it will be evaluating different financial avenues to generate the said amount.
Is Suzlon Share A Good Investment? When Should You Buy?
With the world tilting towards green energy, Suzlon stands in a promising position, given its established presence in wind energy solutions. Moreover, Suzlon has expanded its portfolio, incorporating both wind and solar energy projects. This diversification can potentially shield it from sector-specific setbacks. However, an investment near ₹15 can be a profitable option in the long term.
Conclusion
As India prioritizes sustainable energy, Suzlon’s comprehensive portfolio, which provides both wind and solar solutions, places it at the top of this transition. Recently, the company has undertaken strategic financial decisions, emphasizing fund-raising and debt restructuring, showcasing its commitment to robust financial health. Additionally, its forays into new markets and technologies underscore its ambition to remain a key player in the green energy landscape.
However, it is advised to do your own research and conduct expert analysis before investing in the stock market.
READ MORE:
IRCTC Share Price Prediction: Will IRCTC Shares Jump as Sensex Gains Momentum?
Xxc Renegade 1000 Xxc Price Prediction: Will This ATV Gain Popularity In 2023?
Reliance Power Share Price Future Prediction 2025: Will RPOWER Stock Reach ₹100 In 2023?
Beldex Coin Price Prediction 2025 In INR: Will BDX Token Regain Its Old Momentum?
Yes Bank Share Price Prediction 2025: Will Yes Bank Stock Recover from Crisis?
Credit: Source link