Why Suzlon Share Price is Falling?

On Wednesday, November 13, Suzlon Energy shares, India’s largest provider of renewable energy solutions, initially dropped 5.81% to ₹55.55, dipping below ₹60 for the first time since July. The volatility stemmed from news of a senior executive’s resignation.

Management Change Sparks Initial Decline

In a recent announcement, Suzlon disclosed that Ishwar Chand Mangal, CEO of New Business, had resigned effective November 08, 2024. Mangal, a nearly 3-decade veteran at Suzlon, led various initiatives, including sales, marketing, EPC projects, and offshore wind ventures. His departure was seen as a key reason behind the stock’s initial drop.

Stock Performance Corrects Amid Profit-Taking

After a substantial 913% rally from March 2023 to September 2024, Suzlon’s stock has seen profit-taking. In the last 1 month, the stock dropped by 24.89%, its largest monthly decline since February 2023. With the current price at ₹55.88, Suzlon Energy Ltd’s stock has fallen approximately 35.05% from its 52-week high of ₹86.04. This pullback follows a period of rapid growth and highlights investor caution after extended gains.

Q2 Financial Results Highlight Growth Despite Monsoon Impact

In late October, Suzlon reported strong Q2 FY25 earnings for the September-end quarter, although heavy monsoon rains slightly impacted results. Suzlon delivered 274 MW in the quarter, up from 132 MW a year prior, boosting revenue by 48% to ₹2,093 crore. Net profit grew by 96% year-on-year to ₹201 crore, though it dipped 34% from the previous quarter.

Expanding Order Book Strengthens Outlook

Suzlon’s S144 wind turbine is gaining traction, with an order book of 4.7 GW. The company secured 1.6 GW in new orders during Q2 FY25, taking the order book to a record 5.1 GW, ensuring future revenue stability. A notable achievement this quarter was signing India’s largest wind energy contract with NTPC Green Energy for 1,166 MW.

About Suzlon Energy

Suzlon is a top global provider of renewable energy solutions, specialising in wind turbine generators (WTGs). The company manages all aspects of WTG production, from design to manufacturing key parts like rotor blades, towers, generators, control systems, gears, and nacelles. In addition to manufacturing, Suzlon offers comprehensive wind project services, including wind assessments, infrastructure setup, power connections, and technical planning. It also provides installation and operations and maintenance (O&M) services for wind projects in both India and international markets.

On November 13, 2024, Suzlon Energy share price opened at ₹58.00, touching the day’s low of ₹55.55, rfelecting a decline of 5.83% as of 10:28 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.