Shares of this leading renewable energy solution provider touched a 5% lower circuit on Thursday after exchanges issued a warning for not adhering to the compliance standards.
Price Movement:
Suzlon Energy, with a market capitalization of Rs. 1,03,359.31 crores, At 2:35 p.m shares touched a 5% lower circuit to Rs. 75.75 per share from its previous close of Rs. 79.73 per share.
Reason for the price movements:
Suzlon Energy, a major player in renewable energy, received notices from the NSE and BSE about not adhering to compliance issues.
The first issue was related to the resignation of Independent Director Marc Desaedeleer on 8th of June 2024. When the independent director resigned, Suzlon failed to provide all the necessary details in their announcement. Furthermore, Marc Desaedeleer highlighted concerns about the company’s corporate governance standards in his resignation letter, indicating that they failed to meet expectations. This lack of clear communication and transparency goes against SEBI rules.
The second issue involved an analyst and investor call that took place on June 9, 2024. Suzlon failed to inform the stock exchanges at least two working days in advance, which is required.
Financial performance:
Suzlon Energy has a market capitalization of Rs. 1,03,359.31 Crores. Its sales grew at 25% CAGR in the last 3 years, Net profit grew at 87.5% CAGR over the last 3 years, and its trailing 12 months ROCE stands at 20.15% and the company is almost debt free, as it has a debt to equity ratio of 0.04 in the trailing 12 months.shares of Suzlon Energy grew at 132.08% CAGR over the last 3 years.
Shareholding pattern:
The promoters own 13.27% stake in the company, Foreign institutional investors own 21.53% of the company, Domestic institutional investors own 9.17% of the company, and the public owns 56.03% of the company, all as of June 2024.
About the Company:
Suzlon is a leading global renewable energy solutions provider and a vertically integrated manufacturer of wind turbine generators (WTGs).
The company designs and manufactures key components like rotor blades, towers, generators, control equipment, gears, and nacelles. In addition to manufacturing, Suzlon offers comprehensive wind project planning and execution services, including wind resource assessment, infrastructure development, and technical planning. It also provides operation and maintenance (O&M) services in India and abroad.
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