Suzlon Energy recently achieved a major milestone. The company received relief from a tax penalty of ₹260.35 crore. The Income Tax Appellate Tribunal (ITAT) dismissed penalties imposed by the National Faceless Penalty Center for the financial years 2015-16 and 2016-17.
In its BSE filing, the company stated, “Since the penalty was under stay/abeyance, no refund will be received from this relief.” The cancellation of penalties amounting to ₹87.59 crore and ₹172.76 crore has lifted the tax penalty burden off Suzlon Energy.
About Suzlon Energy
Suzlon Energy Limited is a leading provider of renewable energy solutions, primarily focused on the production of wind turbines. Apart from that, the company offers services in solar energy, including solar irradiance assessment, land acquisition, power evacuation, supply chain management, installation, and commissioning. Suzlon Energy also provides life cycle asset management services.
CEO of SE Forge Resigns
The CEO of Suzlon Energy’s wholly-owned subsidiary SE Forge Ltd, S Venkata Subramaniam, resigned on December 31, 2024, to pursue better opportunities. Following his resignation, he will no longer be considered a senior management personnel (SMP) at the company.
Improvement in CRISIL Rating
CRISIL Ratings upgraded Suzlon Energy’s credit rating to ‘CRISIL A’ with a ‘positive’ outlook, reflecting the company’s improved financial position and increasing profits. This marks the second upgrade by CRISIL in 2024, highlighting Suzlon’s strong operational efficiency, strict financial management, and consistent quarterly growth. Previously, CRISIL had rated Suzlon Energy as ‘CRISIL A-’.
Share Performance: A Stellar Return of 61.72% in 2024
Suzlon Energy’s shares closed at ₹62.23 on December 31, 2024, marking a 1.19% increase. The shares delivered a 61.72% return throughout the calendar year 2024, compared to the 8.12% growth in the BSE Sensex. Experts suggest that high-risk investors should consider buying the company’s shares during market dips.
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Technical Analysis
The shares’ support level is seen at ₹60, with the nearest resistance at ₹70. According to Ravi Singh, Senior Vice President of Retail Research at Religare Broking, a daily close above ₹70 is essential for the next bullish phase.
Shareholding and Financial Position
For the quarter ending September 2024, promoters held a 13.25% stake in the company, slightly down from 13.27% in the previous quarter.
- Market Cap : ₹ 88,437 Cr.
- Current Price : ₹ 65.3
- High / Low₹ 86.0 / 35.5
- Price-to-Earnings (P/E) Ratio: 282.86
- Price-to-Book (P/B) Value: 21.91
- Earnings per Share (EPS): 0.22
- Return on Equity (RoE): 7.81
Suzlon Energy Share Holding Pattern
| Investors | Mar-24 | Jun-24 | Sep-24 |
| Promoters | 13.28% | 13.26% | 13.25% |
| FIIs | 19.57% | 21.53% | 23.72% |
| DIIs | 6.30% | 9.16% | 9.02% |
| Government | 0.00% | 0.00% | 0.00% |
| Public | 60.85% | 56.03% | 54.02% |
| No. of Shareholders | 43,55,169 | 41,96,133 | 49,94,345 |
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Future Prospects and Investment Advice
The growing renewable energy sector and the company’s improved financial health make Suzlon Energy an attractive investment option. However, Kanti Bathini, Director at WealthMills Securities, cautions that the company has faced corporate governance issues in the past, some of which still persist. Investors with a high-risk appetite might consider buying shares during market dips.
Conclusion
Suzlon Energy has made significant improvements in its financial and operational status in 2024. Relief from the tax penalty, the CEO’s resignation from SE Forge, and the CRISIL rating upgrade are positive signs for the company. If the company can break above the ₹70 resistance level, further growth is likely in the future.
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