Suzlon Energy Ltd. stands as a prominent name in India’s renewable energy landscape, focusing primarily on wind energy solutions. As of October 17, 2024, the Suzlon share price is ₹74.10, experiencing a decline of 1.27% from the previous trading session. The stock opened at ₹75.39 and has recorded a trading volume exceeding 7.81 million shares today. As renewable energy continues to gain traction globally, understanding Suzlon’s market position and financial health is essential for investors.
Suzlon Share Price in Today’s Market
During today’s trading session, the Suzlon share price reached a peak of ₹75.45 and dipped to a low of ₹73.10. The company’s current market capitalization is approximately ₹100,865 crore, highlighting its substantial influence within the renewable energy sector. With increasing regulatory support for green energy in India, Suzlon is well-positioned to leverage new opportunities in this expanding market.
Suzlon Financial Overview
Suzlon’s enterprise value is reported at ₹101,743.47 crore, with approximately 1,364.52 crore shares outstanding, indicating significant shareholder engagement. The company’s P/E ratio is notably high at 472.58, which may suggest overvaluation relative to its earnings potential, while its P/B ratio stands at 27.28. Recent financial reports show a sales growth rate of 7.51%, illustrating steady demand; however, a concerning profit growth rate of -95.68% indicates challenges in maintaining operational profitability. With cash reserves of ₹263.13 crore and total debt of ₹636.18 crore, Suzlon exhibits a mixed financial profile, necessitating careful analysis for potential investors.
Suzlon Share Pros & Cons
Pros:
- Sales Growth: A commendable sales growth rate of 7.51% suggests a recovering market demand for Suzlon’s renewable energy solutions.
- Market Position: As a significant player in the renewable energy field, Suzlon stands to benefit from rising global shifts towards sustainable energy sources.
- Potential for Recovery: The company’s strategic commitment to expanding its renewable energy portfolio presents latent growth opportunities.
Cons:
- Negative Profit Growth: The alarming profit growth rate of -95.68% raises red flags about the company’s operational efficiency and long-term viability.
- High Valuation Ratios: The high P/E ratio of 472.58 indicates potential overvaluation, prompting investors to scrutinize the stock prior to investment.
- Low Promoter Holding: With promoter holding recorded at merely 13.27%, concerns may arise regarding insider confidence and commitment to rejuvenating the company’s fortunes.
Indiahood Recommendation on Suzlon Share: Buy or Sell?
Given the prevailing market dynamics and financial metrics surrounding Suzlon Energy Ltd., a cautious approach is recommended. Current holders of Suzlon shares might consider selling to mitigate potential losses, while new investors are advised to stay away until there are clearer indications of profitability recovery and strengthened financial foundations.
Conclusion
In conclusion, while Suzlon’s sales growth reflects a potentially positive trajectory, the drastic downturn in profitability and substantial valuation ratios present notable risks to investors. Due diligence and careful consideration are warranted before engaging in any transactions regarding this stock.
Disclaimer
This article serves purely for informational purposes and should not be construed as financial advice. It is recommended that individuals conduct their own research or consult a qualified financial advisor before making any investment decisions.