Suzlon Energy, a key player in the renewable energy sector, has rewarded investors with exceptional returns in recent years. However, a recent penalty of ₹1.01 crore and declining market performance have raised concerns among investors. The pressing question remains: Can Suzlon Energy achieve the ₹100 level by 2025? Let’s analyze the company’s performance, challenges, and future potential.
Suzlon Energy: A Look at Share Performance
Over the past few years, Suzlon has delivered remarkable returns, but recent months have shown signs of pressure:
- Last 6 months: 15.77% growth
- Last 1 year: 64% return
- Last 2 years: A staggering 477% gain
- Last 3 years: 523% unprecedented growth
Despite these figures, BSE Analytics Data indicates a decline in Suzlon’s share price over the past three months, causing investor concerns.
The Recent Penalty: A Financial Hurdle for Suzlon?
Suzlon Energy faces a penalty imposed by the Deputy Commissioner of Income Tax in Ahmedabad.
Key Details of the Penalty:
- Reason: Late deposit of employees’ Provident Fund (PF) and ESI contributions during FY 2016-17
- Penalty Amount: ₹1,01,60,818
- Company’s Response: Suzlon has decided to challenge the order, expressing confidence in its reversal based on factual merits.
Credit Rating Upgrade: A Ray of Hope
Despite the penalty, Suzlon received positive news in the form of a credit rating upgrade.
- CRISIL Ratings: Upgraded Suzlon’s rating to ‘CRISIL A’, marking the second upgrade in 2024.
- Reason: Strong financial position and profitability
- Bank Loan Facilities: Totaling ₹3,050 crore
This upgrade indicates growing confidence in Suzlon’s financial stability.
Is the ₹100 Target Achievable?
Market experts are divided on Suzlon’s potential to reach ₹100 by 2025.
Technical Analysis:
- Support Levels: ₹58-₹60
- Resistance Levels: ₹68-₹70
Expert Opinion:
Sachin Gupta, an analyst at 5paisa, believes:
- Short-term Target: ₹70-₹72
- Breakout Potential: If the stock crosses ₹72, it could aim for ₹78-₹80.
- Advice: Hold the stock with a stop-loss at ₹57.
Challenges Ahead for Suzlon
Suzlon must overcome several challenges to achieve its ₹100 target:
- Rising Competition: The renewable energy sector is becoming increasingly competitive.
- Financial Pressure: The recent penalty could impact the company’s stability.
- Regulatory Uncertainty: Ongoing legal disputes may slow down growth initiatives.
Conclusion
While Suzlon Energy’s journey to ₹100 in 2025 isn’t impossible, it hinges on overcoming regulatory hurdles and maintaining strong financial performance. The credit rating upgrade and robust fundamentals are positive indicators, but penalties and recent declines warrant caution.
Investment Advice:
- Short-term Investors: Focus on technical levels and monitor resistance zones.
- Long-term Investors: Prioritize Suzlon’s fundamental strengths and growth potential.
Will Suzlon achieve the ₹100 mark by 2025? Only time and market conditions will provide the answer. Stay tuned for updates as Suzlon navigates these challenges and opportunities.
Disclaimer
The news you have read is for informational purposes only. Our website, https://stocknewshub.in/, provides updates on stock market companies, including the latest news, bonuses, dividends, IPOs, and more. Please note that the Indian stock market is subject to risks, and investing in it can lead to financial losses. It is advisable to consult a professional financial advisor before making any investment decisions. Additionally, our website is not registered with SEBI.
READ MORE...Suzlon Energy: Shares Surge 4% in the New Year, Delivering Multibagger Returns to Investors
The First IPO of 2025: Big Expectations from Indo Farm Equipment
IREDA Stock Surges 6% in a Day, Q3 Performance Indicates Strong Growth