Suzlon Energy, a leading name in India’s renewable energy landscape, witnessed a notable decline in its stock price, dropping over 2% despite winning a key wind energy contract from Bharat Petroleum Corporation Ltd (BPCL).
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Shares of Suzlon Energy fell 1.81% in today’s intraday trade, quoted at ₹52.19 as of 12:00 PM, down from the previous close of ₹53.15. This decline follows a 2.6% drop on Thursday, indicating sustained selling pressure. The downturn is particularly noteworthy as it comes in the wake of a significant project win from BPCL, India’s top public-sector oil and gas company.
Recent Performance Snapshot
- Opening Price: ₹51.25
- Day’s High: ₹52.80
- Day’s Low: ₹51.10
- Market Cap: ₹72,500 crore (approx.)
- P/E Ratio: 61.74
- 52-Week High: ₹86.04 (September 2024)
- YTD Decline: 20%
Despite a promising business outlook, the stock is currently trading 38% below its 52-week high, raising investor concerns.
Details of the BPCL Wind Energy Project
As part of BPCL’s strategic transition to cleaner energy, the company has committed to building a 10 GW renewable energy portfolio by 2040. Under this plan, BPCL recently awarded a 100 MW wind power project, with Suzlon bagging a 50 MW project in Madhya Pradesh. The remaining 50 MW will be set up in Maharashtra.
These wind farms will help power BPCL’s Mumbai and Bina refineries, replacing conventional energy with sustainable wind energy. The projects are scheduled for completion within two years. Notably, Suzlon has yet to officially disclose this order to stock exchanges, which may be impacting investor confidence.
What’s Driving the Stock Down?
Despite the positive news, several factors are contributing to the stock’s decline:
- Weak broader market sentiment
- Profit booking by short-term investors
- Mixed performance in the renewable energy sector
- Global uncertainty in energy markets
- High valuation concerns, with a P/E ratio of 61.74
These headwinds have overshadowed the otherwise positive BPCL development.
Suzlon Energy Outlook and Valuation
Suzlon remains a strong contender in the renewable energy space. However, its elevated valuation suggests that much of the expected growth may already be priced in. The ₹50 level is seen as a key technical support zone for the stock.
March 2025 Quarter Forecast:
- Revenue Estimate: ₹3,421.1 crore (up 56% YoY)
- Net Profit Estimate: ₹444.7 crore (up 75% YoY)
- Price Targets: ₹71 and ₹75
- Promoters: 13.25%
- Public Shareholders: 86.75%
Investment Insight
Suzlon’s long-term growth story remains intact, supported by a strong order book and India’s increasing focus on green energy. However, short-term traders should tread cautiously and watch out for confirmed support levels. Long-term investors can consider accumulating at dips, focusing on fundamentals and sectoral trends.
Disclaimer: This article is for educational and informational purposes only. The securities/investments mentioned are not investment advice or recommendations. Please consult your financial advisor before making any investment decisions.
