Suzlon Energy Ltd on Monday said the Income Tax Appellate Tribunal (ITAT) cancelled a penalty order worth Rs 172.76 crore. "This is in continuation to our letter dated March 28, 2024 inter alia referring to a penalty order u/s.270A of the Income-tax Act, 1961 of Rs 172.76 crore by National Faceless Penalty Centre, Income Tax Department, in respect of certain disallowances including that of claim of depreciation on goodwill for the financial year (FY) 2016-17," the renewable energy solution provider stated in a BSE filing.
"In the appeal filed, ITAT has decided the quantum appeal in favour of the company for the said FY. Consequent to the effect-giving order passed by the Jurisdictional Assessing Officer (JAO) received by the Company on December 29, 2024, the JAO has cancelled the aforesaid penalty order. With that, the matter of penalty of Rs 172.76 crore stands settled in favour of the company," it further said.
Prior to this, Suzlon "concluded a long-standing legacy matter" with probe agency 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.
On the stock-specific front, Suzlon today fell 1.77 per cent to hit a low of Rs 62.12. 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 persist. As the renewable energy sector is in an uptrend, one can consider adding this stock on dips," the market expert also said.
Technically, the support level could be seen at Rs 60. "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 now at Rs 60," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
A daily close above the resistance level of Rs 70 is required for more upside, said Sebi-registered research analyst AR Ramachandran
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 283.05 against a price-to-book (P/B) value of 21.93. 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.