Suzlon Energy shares down 22% in 2025 so far; should you enter or stay on the sidelines?

Shares of Suzlon Energy Ltd settled 3.50 per cent lower at Rs 51.23 on Wednesday. At this closing price, the stock has corrected 21.59 per cent on a year-to-date (YTD) basis. The company recently informed exchanges that its wholly-owned subsidiary Suzlon Global Services Ltd (SGSL) received a penalty order worth Rs 7.47 lakh from the office of Commissioner of Customs (Imports), Mumbai, alleging non-payment of customs duty.

The renewable energy solutions provider also shared an update on its order book size after the cancellation of two orders. "Last reported order book of the company as on January 28, 2025, stood at 5,523 MW. Post this with certain new order intakes/cancellation/truncation, the company's order book as on date stands at a healthy position of 5,622 MW (including the despatches made during Q4 FY25 which shall be disclosed at the time of declaration of the financial results for quarter and financial year ended March 31, 2025)," it stated.

Analysts said the counter lacked a clear directional strength at present. One of them suggested staying on the sidelines.

Kunal Kamble, Senior Technical Research Analyst at Bonanza Group, said, "Suzlon is currently trading near its mean, indicating a phase of equilibrium where both buyers and sellers are actively participating. This zone often witnesses indecision, as reflected in the recent price action. A breakout from this level is likely to provide the next directional cue. A sustained move above the Rs 62 mark will signal strong buyer interest and could lead to a bullish rally. On the flip side, a break below Rs 47 would indicate increasing selling pressure, potentially pushing the stock into a downward trend. Traders should watch these levels closely for Suzlon's next move."

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Suzlon witnessed a correction in the last couple of sessions. The structure seems weak with support seen around the Rs 48-47 subzone. While on flip side, strong resistance placed at Rs 54-55 levels is anticipated to restrict its pullback. And until it breaches the same on a decisive manner, outlook remains sideways to negative in the near term."

Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox, said, "Suzlon Energy remains in a sideways consolidation phase, confined within a well-defined range of Rs 55 on the upside and Rs 48 on the downside. The stock is hovering near Rs 54.94–55.94 levels, indicating a lack of clear directional strength. Until it decisively breaks out above Rs 55 or slips below Rs 48, traders are advised to stay on the sidelines. A breakout in either direction would determine the next leg of the move."

As of December 2024, promoters held a 13.25 per cent stake in the company.