Suzlon Energy Ltd said it received a penalty order from the Enforcement Directorate (Hyderabad) over delay in realisation of select export proceeds for shipments completed till the financial year 2016-17 (FY17) by its now subsumed subsidiary Suzlon Wind International Ltd.
"This is to inform that Office of the Joint Director, Enforcement Directorate, Hyderabad has levied a penalty of Rs 20 lakh upon the Company, in relation to delay in realisation of certain export proceeds for shipments made till FY2017," the renewable energy solution provider stated in an exchange filing on Tuesday.
With this, a long-standing legacy matter with the probe agency ED has now been concluded, Suzlon added.
On the stock-specific front, Suzlon shares on Tuesday settled 1.49 per cent lower at Rs 64.82. At this closing price, it has delivered 68.45 per cent returns to investors on a year-to-date (YTD) basis compared to an 8.58 per cent rise in benchmark BSE Sensex during the same period.
Investors with a high-risk appetite can buy Suzlon Energy shares, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "The company has faced corporate governance issues in the past and some of them still persist. As the renewable energy sector is in an uptrend, one can consider adding this stock on dips," he also said.
Technically, support levels could be seen in the Rs 66-63 range. "Rs 70 will act as near-term resistance and a decisive move above the said level can only trigger the next leg of rally. Support will be at Rs 63," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
Suzlon has strong support around Rs 66 levels, Sebi-registered research analyst AR Ramachandran mentioned. "A daily close above the resistance level of Rs 70 could lead to an upside target of Rs 78 in the near term," Ramachandran added.
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 294.64 against a price-to-book (P/B) value of 22.82. Earnings per share (EPS) stood at 0.22 with a return on equity (RoE) of 7.81. Promoters held a 13.25 per cent stake in the company as of September 2024, which is slightly lower from 13.27 per cent in the previous quarter.
Meanwhile, domestic indices will remain closed today on account of Christmas. It will resume action on December 26 (Thursday).