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Dailymiorror.News, November 13th,2024 : Suzlon Energy Ltd. saw its stock price decline by 9.26% in Wednesday’s trading session, reaching a low of Rs 53.89. This marks the fifth consecutive day of losses for the company, bringing the total drop over the past five days to 22.25%. The ongoing decline has raised concerns among investors, with some speculating that further volatility may be ahead for Suzlon’s stock.
Despite the recent price fall, some analysts are cautious about the stock’s future. Aditya Agarwala, Co-founder and Head of Research & Investments at Invest4edu, highlighted that Suzlon’s stock is still trading at a premium valuation. He pointed to the uncertainty in the renewable energy sector following the re-election of Donald Trump as US president, which has negatively impacted stocks across the industry, including Suzlon’s wind energy segment.
Agarwala advised potential investors to wait for the stock to stabilize, possibly around Rs 50, before reconsidering any investments. He also noted that he doesn’t foresee a rapid return to Rs 100, with his more modest target being Rs 80-85.
The renewable energy sector, especially wind and solar, has faced challenges due to Trump’s stance on limiting renewable energy projects. His opposition to the growth of the renewable energy sector has contributed to a broader decline in stock prices in this space.
Suzlon has also faced internal changes, with the resignation of Ishwar Chand Mangal, the long-serving CEO of New Business, who had been with the company for 28 years. This leadership change adds to the uncertainty surrounding the company’s future performance.
Kushal Gandhi, from StoxBox, echoed concerns about Suzlon’s stock, advising against investing in it in the short term. He pointed out that the stock is in a corrective phase, characterized by erratic price movements and heavy selling volumes, which has led to a downward trend and lower highs in its price chart. Gandhi recommended avoiding Suzlon at its current price, given the lack of signs of recovery.
On the financial front, Suzlon posted strong year-on-year growth in its consolidated net profit for Q2 FY25. Profit surged by 95.72%, reaching Rs 200.20 crore, compared to Rs 102.29 crore during the same period last year. Revenue from operations rose 47.68% to Rs 2,092.99 crore, up from Rs 1,417.21 crore in Q2 FY24. The company also recorded growth in EBITDA, which amounted to Rs 294 crore.
However, Suzlon’s promoter stake slightly decreased to 13.25% as of September 2024, down from 13.27% in the previous quarter. This, along with recent leadership changes and ongoing market pressures, highlights the uncertainty surrounding Suzlon’s stock amid both industry and global challenges.
