Shares of this multibagger green energy stock fell up to 3.50 percent on Wednesday after the investor group terminated the shareholder agreement with the company formerly signed eight years back.
With a market capitalization of Rs 34,775.63 crores, the stocks of Suzlon Energy Limited closed at Rs 25.62 in Wednesday’s trading session. The company’s scrip witnessed an intra-day low figure of Rs 25.10 representing a fall of around 3.50 percent compared to the previous closing levels of Rs 25.98 apiece.
The bearish sentiments around the stock were observed after the company, in a regulatory filing with the Bombay Stock Exchange (BSE) dated 26th September 2023, intimated that ‘Dilip Shanghvi Family and Associates’ (DSA), who signed a shareholder agreement with Suzlon Energy Limited back in 2015, has now terminated the same.
Mr. Dilip Shanghvi, on behalf of DSA, mentioned that they will still continue as investors in the Suzlon.
Digging into the financials reported during the recent quarters, the company saw a dip in its basic business indicators such as the operating revenues as well as after-tax profits.
The operating revenues went down from Rs 1,694.08 crores during Q4Y22-23 to Rs 1,350.98 crores during Q1FY23-24, and the after-tax profits took a hit in numbers and observed a dip from Rs 319.99 crores to Rs 100.9 crores during the same time horizon.
Keeping a purview of just six months, the company’s stock has proven to deliver multibagger returns of around 265 percent, i.e., if someone has invested Rs 1 lakh into the company’s stock, it would have converted to Rs 3.65 lakhs within a period of six months.
Having a look at the shareholding pattern, the company’s Promoters, as per the quarter ended June 2023, hold a 14.5 percent stake, and, the Foreign Institutional Investors (FIIs), increasing their stake in the recent period, hold a 6.81 percent stake in the company.
Suzlon Energy Limited is associated with the business of providing renewable energy solutions. Some of the products offered in its portfolio comprise solar energy solutions as well as wind turbine generators. The company generates a majority of its revenue from India, and, abroad from the American, Canadian, and European markets.
Written by Amit Madnani
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