Market Volatility Pressurizes Suzlon Share Price

Updated: 23 Jan 2025, New Delhi, India

Suzlon Share Price Today Live Updates:

Suzlon share price has been showing bearish movement from the past few weeks following negative news of penalties imposed by the government. As of 23 Jan 2025, it fell by 0.45%. The current price is around 54.9 per share. Previously it closed at 55.15.

Suzlon Share Price Today Courtesy: Moneycontrol

Tips for Investors: 

Caution: Suzlon share price is highly susceptible to news.

Current Trend: Bearish

The recent news that led to a 33% downfall of Suzlon share from its 52 week high of 86.04 is about some penalties that it received. Now that it has received some tax relief on those penalties of around Rs. 260 crore from the ITAT (Income Tax Appellate Tribunal), it has successfully arrested its fall and is horizontally staying at 55. 

However, the share price is still volatile, partially because of the current market volatility. For short term purposes, the lower support can be around 50-51. So, watch the share carefully for the next one week or so.

Suzlon Penalties in March 2014 & Their Current Status

It was a long and arduous journey for Suzlon Energy, but finally, justice was served. The company had been slapped with not one, but two hefty penalties by the National Faceless Penalty Centre of the Income Tax Department in March 2024.

The first penalty, a staggering ₹172.76 crore, was imposed for the financial year 2016-17. The tax department had raised several red flags, including disallowances on the company’s claim of depreciation on goodwill.

The second penalty, ₹87.59 crore, was imposed for the financial year 2015-16, again due to disallowances. Suzlon Energy was determined to fight these penalties, and so, they appealed to the Income Tax Appellate Tribunal (ITAT).

After careful consideration, the ITAT ruled in favor of Suzlon Energy, canceling both penalty orders. The Jurisdictional Assessing Officer (JAO) was directed to refund the penalties, bringing a huge sigh of relief to the company.

Suzlon Energy’s perseverance had paid off, and they were finally set to receive a refund. It was a hard-won victory, and the company could now focus on its core business, free from the burden of these unjust penalties.

The Long-Term Prospects
The long term prospects are great and you can expect a price target of Rs. 78. The company is almost debt free which is a positive signal. The company is currently owned by Adani Green Energy with a 100% stake, so you can invest in it at the current market price for long-term purposes.

The facts that indicate a positive outlook for the future are its recently revised CRISIL ratings upgraded to CRISIL “A”. It’s a strong indicator that the company is performing exceptionally well with increased profitability. The company has a lot of order bookings, so, it is all set for expansion and growth.