Despite significant institutional investors, such as mutual funds and FIIs, reducing their investments, Suzlon Energy produced remarkable financial achievements during the September quarter.
With operating margins above 10% for four straight quarters, the company maintained its turnaround momentum and demonstrated better efficiency and controlled operations.
This steady margin performance demonstrates Suzlon's capacity for efficient execution and cost control, bolstering trust in its operational strength.
Suzlon reported impressive year over year growth in its finances. Compared to the same period last year, revenue for the quarter increased by 84% to Rs 3,870 crore.
With a startling 538% growth to Rs 1,280 crore, net profit increased even more spectacularly. These outcomes demonstrate both improved execution and the effectiveness of the business's continuous cost cutting and restructuring initiatives.
Institutional investors decreased their exposure in spite of these impressive figures. In comparison to the June quarter, holdings were reduced by mutual funds from 5.24% to 4.91% and by foreign institutional investors (FIIs) from 23.02% to 22.70%.
It's interesting to note that FIIs still own a significantly bigger stake than promoters, at 22.70% versus 11.74%. This demonstrates how attractive the stock is to investors worldwide despite recent declines.
A favourable picture for Suzlon in the upcoming months is created by the combination of strong financial growth and changing institutional sentiment.
The company's recent investor trimming makes its short term stock performance an intriguing story to watch, both in the market and in India's larger clean energy sector, even though the solid earnings show the company's improving fundamentals.
Technically speaking, Suzlon's stock exhibits some weakness. With a 14 day RSI of 45.1, the market is neither overbought nor oversold.
Additionally, the company is trading below each of the eight major simple moving averages, which is usually indicative of a pessimistic outlook.
This suggests that the stock price has not yet completely reflected the company's strengthening fundamentals, even in spite of the impressive quarterly performance.
The stock of Suzlon Energy Ltd. could rise by 34.8% from its present market price, according to Trendlyne Forecaster. The consensus rating from ten analysts monitoring the stock is a "Strong Buy," showing widespread belief in the firm's potential for short-term gain. Suzlon Energy's share price fell 12% in 2025, from Rs 62 at the beginning of the year to Rs 55.
