In May, Suzlon Energy, a company specializing in wind and solar energy, saw significant buying activity from mutual funds. According to a report by Nuvama, mutual funds added 14.21 crore shares of Suzlon during the month, raising their total holdings to 45.03 crore shares by May 31, 2024, up from 30.81 crore shares at the end of April 2024. This represents a substantial increase in shareholding, with mutual funds investing a net amount of Rs 680 crore in Suzlon. Among the notable investors, Axis Mutual Fund made a new entry, and HSBC Mutual Fund acquired approximately 2.55 crore shares for an estimated Rs 121 crore.

Suzlon’s stock performance in May was strong, with the stock rising by 15%. Over the past year, Suzlon has delivered an impressive 231% return, and in 2024 alone, the stock has returned 30% to date. This performance is notable compared to the Nifty index, which fell by 74 points or 0.32% in May and has 1-year and year-to-date returns of 25% and 8%, respectively.

As of March 31, 2024, mutual funds collectively held 1.86% of Suzlon, equivalent to over 25.26 crore shares. While the exact figures for the June quarter will be available in July, mutual funds have already purchased nearly 20 crore shares in April and May alone.

Currently, Suzlon shares are trading at Rs 50.07 on the BSE, a slight decrease of Rs 0.22 or 0.44%. The stock has remained stable, with a 1-year beta below 1, according to Trendlyne. Suzlon shares are also trading above their 50-day and 200-day simple moving averages (SMAs). Momentum indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) from Trendlyne place Suzlon in the medium range at 62.5 and 52.7, respectively.

The significant mutual fund interest and Suzlon Energy’s strong stock performance highlight growing confidence in the company’s prospects, particularly in the renewable energy sector.