Suzlon Share price Has Been Declining Consistently Over the Past Month, Down Nearly 17%. However, speaking of last year, this share has delivered an almost 400% return over the course of one year.
Suzlon share price : overview
Suzlon Group stands as a global leader in renewable energy solutions, reshaping the landscape of sustainable energy utilization worldwide. With operations spanning 17 countries across Asia, Australia, Europe, Africa, and the Americas, Suzlon is at the forefront of fostering a greener future. Leveraging its expertise in renewable energy systems and backed by cutting-edge research and development spanning over two decades, Suzlon offers a diverse portfolio of reliable products ensuring optimal performance and maximum returns for its customers.
At the heart of Suzlon’s initiatives lies a commitment to sustainable development, driving efforts to safeguard the environment, empower communities, and foster responsible growth. Suzlon’s headquarters at One Earth in Pune exemplifies this ethos, boasting Platinum LEED certification and a 5-star rating from GRIHA, making it one of the most environmentally friendly corporate campuses globally.
Why share price going down ?
Suzlon share price have been consistently declining over the past month, experiencing a drop of approximately 17%. The reason behind this decline is that the Ministry of New and Renewable Energy (MNRE) is considering reintroducing “reverse auctions” for auctioning wind power capacity to energy companies. According to reports, MNRE has informed companies like NTPC, NHPC, SJVN, and other Public Sector Undertakings (PSUs) through an official letter. In this directive, reasons such as undersubscription and elevated tariff discovery in recent wind bids have been cited as the appropriate reasons.
As per the report, MNRE has reintroduced the previous method of reverse auctions, capping it at 600 MW for standard wind tenders and requiring renewable energy implementing agencies to issue bids nationwide. NTPC, NHPC, and SJVN, along with state agencies, serve as Renewable Energy Implementing Agencies for developers such as Suzlon and Inox Wind. Concerns on Dalal Street arise due to potential impact on returns for developers like ReNew and NTPC, as reduced tariffs may lead to margin pressure for equipment suppliers. Wind power purchase agreements currently follow a single-stage, two-envelope closed bidding process, where the lowest bidder wins.
In a reverse auction, bidders have the opportunity to continue bidding on winning tenders even after the initial bids are opened, until a bid tariff remains unchallenged.
Recent Order of suzlon
Suzlon secured an order to install 23 wind turbine generators, each with a rated capacity of 3.15 MW, utilizing Hybrid Lattice Tubular (HLT) towers at a site in Dwarka, Gujarat. These turbines, part of Suzlon’s larger 3 MW product series, will be supplied and maintained by Suzlon, providing comprehensive operations and maintenance services post-commissioning. The order was obtained through Juniper Green Energy Pvt. Ltd.’s bid awarded by Gujarat Urja Vikas Nigam Ltd. This project is expected to power approximately 59,000 households and reduce carbon dioxide emissions by around 2.35 lakh tonnes annually. that is the big reason of suzlon share price going up.
With 1.6 gigawatts on order, the company’s portfolio is made up of a mix of 45% 2-MW and 55% 3-MW turbines. With respect to installed capacity, Suzlon currently runs between three and four gigawatts, using a mix of two- and three-MW turbines.
suzlon share price
Suzlon share price currently trading at 37.15, representing a decrease of 0.54% or 0.20 rupees from yesterday’s closing price. Looking at the 52-week high, Suzlon reached nearly 50.60 rupees, while its low was 6.95 rupees. Today’s trading volume is around 96 lakh shares.
Fundamentals
- Market cap : ₹ 50,639.20 Cr.
- No.of shares : 1,361.27 Cr.
- Face value : ₹ 2 per share
- P/B : 14.42
- promoter holding : 13.29 %
- Debt : ₹ 2,332 Cr.
- ROCE : 126.41%Debt/Equity
- debt to equity : 1.64
- Sales growth : -11.13%
Promoter holding
In June 2023, the promoter held only 14.5% of the shares, out of which nearly 80% were pledged, resulting in a negative impact. However, after receiving significant orders, the promoter released all the pledged shares in September 2023, reducing their holding to 13.29%. Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold approximately 16.93% and 7.05%, respectively, while the public holds 62% of the shares.
Disclaimer
The mention of the stock is purely for informational purposes and should not be construed as a recommendation to buy, sell, or hold. No fundamental or technical analyses have been conducted, and therefore, no opinion is expressed on the mentioned stock. Neither the author nor live4daily can be held liable for any losses incurred. For personalized advice, please consult a professional advisor. All prices mentioned are approximate and subject to change. This information is provided solely for educational and informational purposes. It is advisable to seek the guidance of a financial advisor before making any buy/sell decisions.
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