Suzlon Hits 52-Week Low At Open; Stock Down 3% — Here's Why

Suzlon near oversold territory as geopolitical risk drives market selloff; stock down 17% in a year.

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Shares of Suzlon Ltd. hit a fresh 52-week low at open on Monday, hitting the Rs 39.13 mark. Although the stock has recovered since, it is still trading with cuts of over 3% as part of the broad-based selling pressure in Indian equity markets, due to ongoing geopolitical tension in the Middle East.

The stock is currently trading at Rs 41.28, which represents a 3.26% fall from Friday's closing price of Rs 42.67. The stock has fallen almost 17% in the last 12 months and is currently trading with a relative strength index of 32, which is dangerously close to the oversold territory.

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The pressure in Suzlon shares today is part of a broader selling pressure across sectors, including the renewables space. It must be noted that some of the other renewable players, including KPI Green, Waaree Renewables and Premier Energies, are also trading with major drawdowns today. 

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Renewables is not the only sector hit by the ongoing tensions in the Middle East, with all but the Nifty Metal Index trading in the red on Monday. Nifty Oil & Gas has been hit the hardest, with a correction of 1.62%, while Nifty Realty, too, has witnessed a sharp fall of almost 1.5%. 

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As far as Suzlon is concerned, the stock has fallen more than 20% on a year-to-date basis. Out of 10 analysts tracking the company, nine maintain a 'buy' rating, one recommends a 'hold,' and none suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 64.5 implies an upside of 56%.

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