Shares of India’s largest renewable energy solutions provider tanked 10 percent after the company announced its result for the first quarter of the current financial year (Q1FY24). Its shares shed 5 percent on Tuesday and another 5 percent on Wednesday. They were locked in a lower circuit at ₹ 18.05 apiece on the National Stock Exchange (NSE).
Suzlon Energy manufactures wind turbine generators and related components. It has a presence in approximately 17 countries across the world. Its services include operation and maintenance services, leadership, optimization and digitalization, value-added services and products and multi-brand operation and maintenance services.
According to an exchange filing, the company’s profit declined by 95.85 percent to 100.90 crores in Q1FY24, compared to ₹ 2,433.33 crores in the corresponding period last year (Q1FY23). At the same time, its revenue declined by 2.18 percent to ₹ 1,347.52 crores in Q1FY24, compared to ₹ 1,377.58 crores in Q1FY23.
After a sustained effort to reduce debt in FY23 that resulted in a healthier and sustainable balance sheet for the company, it said that its focus in the current financial year (FY24) remains on funding its operations and fulfilling its commitments to its customers and stakeholders.
With a market capitalization of ₹ 23,608 crores, Suzlon Energy is a mid-cap company. Its shares were trading at a price-to-earnings ratio (P/E) of 7.19, which is lower than the industry P/E of 29.06, indicating that the stock might be undervalued as compared to its peers.
Retail investors hold a 72.80 percent stake in it, followed by promoters with 14.50 percent, foreign institutions with 6.81 percent, domestic institutions with 5.15 percent and mutual funds with 0.74 percent.
Written by Simran Bafna
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