Suzlon Energy, a significant player in India’s renewable energy sector, has seen notable fluctuations in its stock price recently. On Tuesday, Suzlon’s stock opened at INR 62.16, the same as its previous closing, before experiencing a decline of 4%, dropping below INR 60. Here’s a comprehensive look at the stock’s recent performance, reasons for its current downtrend, and the outlook moving forward.
Suzlon Energy Stock Performance Summary
| Time Period | Stock Movement |
|---|---|
| One Week | Down 10% |
| One Month | Down 20% |
| Three Months | Down 25% |
| One Year | Up 56% |
| Three Years | Up 800% |
Despite recent volatility, Suzlon has delivered impressive long-term returns. Over the past year, the stock has risen by 56%, and over three years, it has provided an extraordinary return of 800%, making it an attractive option for long-term investors.
Why is Suzlon’s Stock Declining?
Market experts attribute Suzlon’s recent decline to a major change in management. Recently, the company disclosed that Ishwar Chand Mangal, the CEO of New Business, resigned to pursue new opportunities outside the organization. Mangal, who has been with Suzlon for nearly 30 years, played a crucial role in driving the company’s business growth, overseeing sales, marketing, EPC projects, and leading strategic initiatives such as entering the offshore wind sector. His departure has raised concerns about the company’s leadership stability and long-term direction, contributing to the current stock price pressure.
Promoter and Institutional Investor Holding
As of September 2024, Suzlon’s promoters hold a 13.25% stake in the company. Foreign Institutional Investors (FIIs) have shown increasing interest, raising their stake consistently over the past year:
| Date | FII Holding |
|---|---|
| September 2023 | 10.88% |
| December 2023 | 17.93% |
| March 2024 | 19.57% |
| June 2024 | 21.53% |
| September 2024 | 23.72% |
This growing FII presence suggests confidence in Suzlon’s long-term growth, especially given its position in the expanding renewable energy market.
Recent Achievements and Order Book Growth
Suzlon recently secured an 87 MW order from Continuum Green Energy Private Ltd., a major player in renewable energy. This repeat order for advanced 3 MW wind turbine generators (WTGs) will be executed on a complete turnkey basis, including multi-year operations and maintenance (O&M) services. Located across Gujarat and Rajasthan, this project adds to Suzlon’s ongoing collaborations with Continuum, bringing their total orders from this client to approximately 700 MW. Overall, Suzlon’s order book has exceeded 3.4 GW, marking a new record.
Suzlon Competitor Overview: Inox Wind Limited
In comparison, Inox Wind Limited (part of the Inox Group) has seen notable performance in recent months. Trading at around INR 207 per share, Inox Wind boasts a market cap of INR 27,040 crore and has delivered over 230% returns in just one year. Inox recently announced strong quarterly results, with revenue for Q2 FY24 reaching INR 732 crore, up 98% year-on-year. The company has demonstrated significant growth in operating profit margins, driven by a surge in demand for its wind turbine generators and turnkey solutions across India.
Summary Table: Suzlon Energy Share and Market Information
| Detail | Information |
|---|---|
| Stock Open Price | INR 58.00 |
| 52-Week High | INR 86.04 |
| 52-Week Low | INR 33.90 |
| Market Cap | INR 76,280 crore |
| P/E Ratio | 79.08 |
| Div Yield | – |
| Current Price (as of last close) | INR 55.88 |
| Recent Decline | Down 24.5% over the past month |
Investment Outlook
While recent volatility in Suzlon’s stock price may raise concerns, the company’s fundamentals remain strong. The growing order book and increasing FII interest point to a positive outlook for long-term investors. However, the recent management changes and resulting market uncertainty may affect short-term performance. Investors should consider these factors carefully and evaluate Suzlon’s potential for continued growth within India’s renewable energy landscape.
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