Suzlon Energy shares dive 9% in 2 days to slip below Rs 50 mark; what's next?

Shares of Suzlon Energy Ltd continued their sharp fall for the second consecutive session on Friday, sliding below the psychological Rs 50 level. The stock tumbled 5.01 per cent to hit an intraday low of Rs 49.50. At this price, it has slumped 9.25 per cent in just two trading days.

The company today informed bourses that the commissioner office of CGST and Central Excise (Chennai North Commissionerate, Chennai) has levied a penalty worth around Rs 1.18 crore upon it, alleging excess input credit/ineligible input credit in GST returns during the FY 2020-21, 2021-22 and 2022-23. Suzlon underscored that the said order has "no material impact on the financial, operation or other activities of the company."

On BSE, around 50.77 lakh shares were last seen changing hands. The figure was slightly lower than the two-week average volume of 51.09 lakh shares. Turnover on the counter came at Rs 25.48 crore, commanding a market capitalisation (m-cap) of Rs 67,667.92 crore. There were 85.49 lakh sell orders against buy orders of 5.42 lakh shares.

Suzlon is suitable for only those with a high-risk appetite, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, adding investors should currently avoid taking positions.

On technical setup, support for the renewable energy company's stock could be seen in the Rs 49-47 range and immediate resistance may be found above Rs 54 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon's move has been restricted, witnessing a correction in the last couple of sessions. The structure seems weak with support seen around the swing low of Rs 48-47-subzone. While on the flipside, strong resistance at Rs 54-55 is anticipated to restrict its pullback. Until it breaches the same in a decisive manner, the outlook remains sideways to negative in the near term."

Sebi-registered research analyst AR Ramachandran said, "Suzlon Energy is bearish on daily charts with strong resistance at Rs 55. A daily close below support of Rs 49 could lead to a downward target of Rs 45.5 in the near term."

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 37.55. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 142.77 against a price-to-book (P/B) value of 17.53. Earnings per share (EPS) stood at 0.35 with a return on equity (RoE) of 12.36.

Promoters held a 13.25 per cent stake in Suzlon Energy during the December 2024 quarter.