Suzlon Energy shares rise 4%, extends five-day rally to nearly 18%. Should you buy?

Suzlon Energy shares extended their winning streak on Thursday, rising as much as 3.78% to hit an intraday high of Rs 52.16. The stock has now gained for five consecutive trading sessions, rallying nearly 18% over the period.

According to a recent note by JM Financial, India’s peak power demand during hot and humid evening hours is increasingly aligning with solar-hour demand patterns in El Niño-like conditions. This mismatch places added strain on the grid at night, when roughly 80 GW of solar generation is unavailable.

The brokerage also expects India to record its highest-ever capacity addition in FY27, surpassing the previous peak of 6.1 GW in FY26. However, it flagged execution concerns for Suzlon Energy, pointing to a widening gap between deliveries and installations. As of March 31, 2025, Suzlon had 371 MW of systems erected and ready for commissioning (about 10% above installations), which further increased to 776 MW by December 31, 2025 (around 76% above installations).


JM Financial said this raises concerns around execution pace and near-term order inflows, though it expects a sharp improvement in commissioning activity in the first half of FY27, potentially supporting cash flows and triggering a new cycle of orders.

The brokerage has maintained a ‘Buy’ rating on the stock with a target price of Rs 64, implying an upside potential of over 27% from the previous close of Rs 50.26.

On the valuation front, as per Trendlyne data, Suzlon Energy is trading at a price-to-earnings (P/E) multiple of 20.85, a price-to-sales ratio of 7.1, and a price-to-book value of 11.04. The 14-day RSI is at 73.4, signalling overbought territory and hinting at the likelihood of a short-term correction.

Technically, the stock remains strong, trading above 7 of its 8 simple moving averages, though it is still below its long-term 200-day SMA.

Institutional holdings rose as FIIs increased their stake from 23.73% to 23.85% and mutual funds raised holdings from 4.82% to 4.87% in the March 2026 quarter.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)