Suzlon Energy shares update on tax penalty from Tamil Nadu GST department. Details here

Suzlon Energy Ltd on Thursday shared an update regarding a tax penalty by the Tamil Nadu GST department, in which an appellate authority reduced the fine to Rs 1 lakh. "This is in continuation to our letter dated April 4, 2024 intimating about imposition of penalty of Rs 98,79,340 by GST, Tamil Nadu. The company had paid the said penalty amount under protest and had preferred an appeal with the Honourable appellate authority, Madurai & Tirunelveli (TN). The Honourable appellate authority, accepting the company's submission, has modified the order and reduced the demand to just Rs 1,00,000," the renewable energy solutions provider stated in a BSE filing.

The balance penalty amount of Rs 97,79,340, as already paid by the company, would be refunded in due course, it added.

Prior to this, the company informed exchanges that a material price movement was noticed in the scrip of Suzlon Energy on December 17, 2024. "This is to inform that a Material Price Movement (MPM) has been noticed in the scrip of Suzlon Energy Limited on December 17, 2024 at 01:08 p.m. However, we could not ascertain any event or information in the mainstream media which could have triggered this MPM," it said in a separate filing.

Suzlon shares today settled 1.35 per cent lower at Rs 67.03. At this closing price, it has delivered 74.19 per cent returns to investors in the calendar year 2024 so far compared to a 9.61 per cent rise in benchmark BSE Sensex during the same period.

"Investors with a high-risk appetite can buy Suzlon Energy shares. 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," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Technically, a series of support levels may be seen in 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 304.68 against a price-to-book (P/B) value of 23.60. 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.