Suzlon Energy shares tank nearly 36% from 1-year high; time to trade or stay cautious?

Shares of Suzlon Energy Ltd were trading 1.22 per cent lower at Rs 47.91 in Monday's trade. At this price, the stock is down 35.52 per cent from its 52-week high of Rs 74.30, which was recorded on May 30 last year.

Commenting on the stock's recent performance, Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said that the brokerage remains optimistic from a valuation perspective.

According to him, after a prolonged phase of consolidation and underperformance, Suzlon's share price appears attractive at current levels. He told Business Today that the recent decline has eased valuation concerns that had emerged after the sharp rally seen earlier.

Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, advised caution while maintaining a constructive stance for existing investors. He said investors who already hold the stock may continue to stay invested, while closely tracking upcoming quarterly results.

Bathini highlighted that the alternative energy space is currently undergoing a consolidation phase and added that Suzlon is more suitable for investors with a high-risk appetite, given the stock's volatility.

The shareholding pattern for the December 2025 quarter reflects divergent trends among investor categories. Domestic institutional investors (DIIs) reduced their exposure to the stock during the quarter.

As per exchange filings, DIIs held 1,26,63,46,053 equity shares, or a 9.24 per cent stake, as of December 31, 2025. This compares with a holding of 1,39,28,93,394 equity shares, or 10.16 per cent, as of September 30, 2025. The reduction of over 12.65 crore shares represents a decline of 92 basis points (bps) in their stake.

In contrast, foreign portfolio investors (FPIs) increased their holding in Suzlon during the same period. FPIs owned 3,25,41,20,395 equity shares, or 23.73 per cent, as of December 2025, up from 3,11,20,34,599 equity shares, or 22.70 per cent, in the September 2025 quarter. This translates into an addition of 14.21 crore shares, or a 1.03 per cent increase in stake.

Technically, the stock is trading below 5-day, 10-, 20-, 30-, 50-, 100, 150-day and 200-day simple moving averages (SMAs). The 14-day Relative Strength Index (RSI) stands at 29.73. A level below 30 is defined as oversold, while a value above 70 is considered overbought.

BSE data shows that Suzlon is trading at a standalone and consolidated price-to-earnings (P/E) ratio of 21.95 and 20.77, respectively, with a price-to-book (P/B) value of 16.98. The company reported standalone and consolidated earnings per share (EPS) of 2.19 and 2.31, while its return on equity (RoE) stood at 77.47.

According to Trendlyne, the stock has a one-year beta of 1.51, indicating high volatility. 

Suzlon Energy is a renewable energy solutions provider with a primary focus on wind turbine manufacturing. The company also offers solar energy services such as project planning, installation and asset management. As of December 2025, the promoter group held an 11.73 per cent stake in the company.