Suzlon Energy Ltd shares continued their downward move for the sixth consecutive session on Thursday. The stock fell 5 per cent to settle at Rs 75.75. At this price, it has declined 9.53 per cent in six trading days. Despite the mentioned fall, the scrip has rallied 96.86 per cent in 2024 so far.
The renewable energy solution provider has received an 'advisory cum warning' letter from bourses BSE and NSE. "On review of the responses and documents received from the company on the issues raised by the resigning independent director, it was identified that there seem to be few instances where better corporate governance practices could have been followed by the company," exchanges stated.
This was about the disclosure submitted by Suzlon on June 8, 2024, concerning the resignation of Marc Desaedeleer as independent director where the resignation letter highlighted that the corporate governance standards did not meet the expectations.
"The aforesaid non-compliance on your part is viewed seriously. You are hereby warned and advised to be careful in future, exercise due caution and initiate corrective steps to avoid recurrence of such lapses so as to ensure due compliance with the applicable provisions of SEBI LODR. Any aberration in future will be viewed seriously and appropriate action would be initiated," BSE & NSE also said.
Suzlon, on its part, said that the advisory/warning letter has no material impact on the financial, operation or other activities of the company.
Technically, the counter looked 'bearish' on daily charts. Suzlon Energy stock price is bearish on daily charts, said Sebi-registered research analyst AR Ramachandran. It may slip towards Rs 68 level in the near term, the analyst added.
The stock saw heavy trading volume on BSE as around 65.92 lakh shares changed hands today. The figure was higher than the two-week average volume of 51.88 lakh crore shares. Turnover on the counter came at Rs 50.51 crore, commanding a market capitalisation (m-cap) of Rs 1,03,359.31 crore.
The counter traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 41.76. A level below 30 is defined as oversold while a value above 70 is considered overbought.
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 506.91 against a price-to-book (P/B) value of 30.09. Earnings per share (EPS) stood at 0.16 with a return on equity (RoE) of 5.95. As of June 2024, promoters held a 13.27 per cent stake in the company, which is slightly lower from 13.29 per cent in the previous quarter.