Suzlon CEO Resigns, Shares Plunge 6.5% to ₹62.50 Despite 95.72% Profit Surge

Suzlon Energy’s CEO, Ishwar Chand Mangal, resigned on November 8, 2024, to pursue new opportunities. Despite a 95.72% increase in Q2 FY25 net profit and a 47.68% revenue growth, the stock dropped by 6.49%, closing at ₹62.50. The resignation added to investor concerns, affecting market sentiment.

CONTENTS:

• Suzlon’s stock drops, mixed performance.
• Suzlon faces mixed performance, CEO resignation.
• Suzlon CEO resignation impacts stock, posts strong earnings.

Suzlon CEO Resigns, Shares Plunge 6.5% to ₹62.50 Despite 95.72% Profit Surge

Suzlon’s stock drops, mixed performance

Suzlon CEO Resigns  On November 13, 2024, Suzlon’s share price has dropped by 5.89%. The stock opened at ₹58.06 and closed at ₹55.89, with a daily high of ₹59.26 and a low of ₹55.50. As of 12:00 PM on the same day, Suzlon shares were trading at ₹55.89, reflecting a 5.89% decline compared to the previous close. The Nifty and Sensex indices are also down by 0.8% and 0.57%, respectively.

Technically, the stock is trading below its short-term (5, 10, and 20 days) and long-term (50, 100, and 300 days) simple moving averages (SMAs). Key resistance levels are at ₹61.72, ₹64.15, and ₹65.42, while support levels are at ₹58.02, ₹56.75, and ₹54.32.

From a fundamental perspective, Suzlon has a return on equity (ROE) of 26.31% and return on assets (ROA) of 10.40%. The stock’s price-to-earnings (P/E) ratio stands at 83.95, and its price-to-book (P/B) ratio is 18.03.

The stock has a potential upside of 37.77% in the next year, with a target price of ₹77.00. The promoter holding stands at 0.00%, while mutual fund (MF) holding is 2.02%, and foreign institutional investor (FII) holding is 22.82%, which has increased from 20.63% in June. Despite the drop in Suzlon’s share price today, its peers, such as Bharat Heavy Electricals, Thermax, and Voltas, are experiencing a mixed performance.

Suzlon faces mixed performance, CEO resignation

Suzlon CEO Resigns  Suzlon Energy shares dropped by 0.56%, closing at ₹62.15, which is a 27.77% decline from the one-year high of ₹86.04 reached on September 12, 2024. The stock has been on a downward trend for three consecutive sessions. Despite this, Suzlon reported a 95.72% year-on-year increase in its second-quarter FY25 net profit, which rose to ₹200.20 crore from ₹102.29 crore in the same period last year. Additionally, revenue surged by 47.68% to ₹2,092.99 crore.

The resignation of CEO Ishwar Chand Mangal, who had been with the company for 28 years, added to investor concerns. From a technical perspective, immediate resistance for the stock is seen in the ₹66-72 range, while support could be around ₹60.

Analysts have advised caution with Suzlon at current levels. Osho Krishan of Angel One highlighted that the stock has corrected by around 30% from its recent peak and suggested that support could be found around ₹60-55, with resistance at ₹70-72. Kushal Gandhi from StoxBox recommended avoiding the stock due to erratic price movements and high selling volumes, with immediate support at ₹56.50-55.50. Jigar S Patel from Anand Rathi noted a trading range between ₹58 and ₹70 in the short term. AR Ramachandran of SEBI recommended buying only if the stock closes above ₹66.6, targeting ₹79 in the near term.

As of September 2024, promoters held a 13.25% stake in the company, slightly down from the previous quarter.

Suzlon CEO resignation impacts stock, posts strong earnings

Suzlon CEO Resigns  Suzlon Energy announced that Ishwar Chand Mangal, the CEO of New Business, resigned effective from the close of business on November 8, 2024. Mangal left the company to explore new challenges and opportunities outside of Suzlon. Along with his resignation, he will also cease to be a senior management personnel (SMP) of the company.

Suzlon Energy is India’s largest renewable energy solutions provider, specializing in the design, development, manufacturing, and supply of wind turbine generators (WTGs). The company operates in 17 countries across six continents.

In its most recent earnings report for Q2 FY25, Suzlon Energy posted a 95.72% increase in consolidated net profit, reaching ₹200.20 crore, alongside a 47.68% growth in revenue, which totaled ₹2,092.99 crore compared to the same period in FY24.

Following the resignation announcement, Suzlon’s share price dropped by 6.49%, settling at ₹62.50 on November 8, 2024.