If you are about to open a demat account online and are keen on the renewable energy sector in India, then you should track Suzlon Energy’s share price because it is a prominent player in the renewable energy sector in India.
Besides, the Indian Government has shown its commitment to reducing carbon emissions by giving a boost to renewable energy. India wants to achieve 500 GW of renewable energy capacity by the year 2030.
This is good news for Suzlon Energy, which is into wind energy and solar energy solutions in India. But, before you decide whether Suzlon Energy is a good long-term bet or not, you should analyse how its stock price has performed this year.
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Suzlon Energy’s Share Price Performance This Year
Between January 15, 2024 and November 13, 2024, Suzlon Energy share price moved up by 23%. In the same time frame, the benchmark Nifty 50 moved up by 7%. Hence, it may seem that Suzlon Energy has outperformed Nifty 50 by a huge margin. But if we dig deeper, we will be able to make interesting observations.
Suzlon Energy’s stock has fallen significantly in November 2024. Between October 31, 2024 and November 13, 2024, the stock fell by 19%, while the Nifty 50 declined by just 3%.
Earlier in the year, Suzlon Energy received advisory cum warning letters from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) based on this report published in The Hindu Business Line.
As per the published news report, the communications of Suzlon Energy lacked transparency and detailed information. This was regarding the disclosures made by Suzlon Energy following the resignation of its independent director Mr. Marc Desaedeleer.
Recently, another disclosure was made by Suzlon Energy to the BSE on November 8, 2024. The company informed the exchange that Mr. Ishwar Chand Mangal, the CEO – New Business, had resigned.
Mr. Mangal was with Suzlon Energy for close to three decades. He was a senior management personnel (SMP) who had a lot of knowledge and experience in the renewable energy sector.
Typically, when an SMP leaves a company, investors get concerned about the company’s prospects. If you want to navigate the movements in Suzlon Energy’s share price, you should consider these changes in its key personnel.
Apart from that, you must also open demat account online & understand how it has performed financially in recent times.
Suzlon Energy’s Financial Performance in Recent Times
The company posted a good set of numbers for its September 2024 quarter. Its consolidated net revenue increased by 48% in the September 2024 quarter compared to the September 2023 quarter. At the same time, its consolidated net profit grew by 96% in the same timeframe.
Its yearly performance also seems to be improving. The company reported a consolidated net profit of ₹2,887 crore in FY 2022-23 compared to a consolidated net loss of ₹166 crore in FY 2021-22.
In a nutshell, Suzlon Energy’s financial performance seems to be improving in recent times.
Conclusion
It is a bit difficult to take a call on Suzlon Energy’s share price. On the one hand, the company’s stock has taken a fair amount of beating in recent times. Moreover, a few key personnel have left the firm.
On the other hand, its financial performance has improved recently, which means the company is performing better than earlier. Meanwhile, the BSE and NSE have sent advisory cum warning letters to Suzlon Energy, citing a lack of transparency and detailed information.
Therefore, while Suzlon Energy has performed well financially, there are still issues about its performance, which need to be taken into consideration. Hence, the best thing to do is to keep tracking its stock price and see how the company improves its functioning over a period of time.
