Suzlon Energy stock drops over 6% to dip below ₹60 mark, down 28% from 1-year high | Stock Market News
Source: Live Mint
Stock Market Today: Shares of Suzlon Energy, India’s largest renewable energy solutions provider, fell 6.30% to ₹58.56, slipping below ₹60 for the first time since late July on Monday, November 11. However, the stock recovered its losses and was last trading with a 0.54% gain at ₹62.84 per share as of 1:45 p.m.
The early morning volatility in the stock price was triggered by the company’s announcement regarding the resignation of a top management executive. In an exchange filing on Friday, the company notified investors that Ishwar Chand Mangal, CEO of New Business, has resigned, effective at the close of business on November 8, 2024, to pursue new challenges and opportunities outside the company.
Mangal had been with Suzlon for nearly three decades and had led various business verticals, including sales and marketing, business development, EPC projects, global OMS, and new business initiatives, including the company’s foray into offshore wind.
Stock corrects 28% from 1-year high
After a remarkable rally from March 2023 to September 2024, during which the stock surged by 913%, it struggled to maintain the same momentum in the following months as investors appeared to take profits after significant gains.
In October, the stock saw a 16% correction, its steepest monthly drop since February 2023. Thus far in the current month, it has declined by an additional 6.5%. As a result, the stock is now trading 28% lower than its recent one-year high of ₹86.
Meanwhile, the stock’s performance in recent years marked the biggest rebound on Dalal Street, reflecting the company’s successful strategies and the potential for growth in the renewable energy sector.
On October 29, the company posted a healthy performance for the September ending quarter, though it came in slightly below analysts’ expectations due to the impact of the heavy monsoon.
It ramped up execution to 274 MW in Q2 FY25, compared to 132 MW in Q2 FY24, resulting in net revenue of ₹2,093 crore, a 48% year-over-year improvement. Net profit stood at ₹201 crore, reflecting a 96% year-on-year increase but a 34% quarter-on-quarter decrease.
As of the September quarter-end, the company’s S144 wind turbine had secured a robust order book of 4.7 GW, and the company is ramping up capacity to boost manufacturing for this product. A robust order inflow of 1.6 GW during the reporting quarter has led to a record-high order book of 5.1 GW, providing strong revenue visibility.
During the quarter, the company signed India’s largest wind energy order of 1,166 MW with NTPC Green Energy Limited.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
