Business

IIE DIGITAL DESK : Shares of Suzlon Energy witnessed a sharp dip on June 3, 2025, sliding 4.5% in intraday trade to fall below the psychologically significant ₹70 mark. The stock dropped to an intraday low of ₹68.10 before recovering marginally by the session’s close. The fall was widely attributed to profit booking by investors after a robust rally in recent weeks, driven by the company’s strong performance in the fourth quarter of the financial year 2024-25.

Suzlon’s stock had surged significantly in May 2025, peaking at a six-month high of ₹74.30 on May 30. The upward momentum was largely fueled by investor enthusiasm following the announcement of the company’s impressive Q4 results, which were released at the end of May. The renewable energy giant posted a consolidated net profit of ₹1,182 crore for Q4 FY25, marking a staggering 365% increase year-on-year compared to ₹254 crore in the corresponding quarter last year.

In addition to the surge in profit, Suzlon reported a 73% year-on-year increase in revenue, which stood at ₹3,774 crore for the quarter. The strong top-line and bottom-line performance, paired with an improving macro environment for renewable energy in India, had led to renewed investor confidence in the company. However, following this rally, many investors chose to lock in their gains, leading to today’s price correction.

Market analysts describe the correction as a “healthy retracement” rather than a sign of weakening fundamentals. According to them, the stock had run up considerably in a short period, making it vulnerable to short-term profit booking. Technical indicators had also begun showing signs of overbought levels, prompting traders and institutional investors to pare down their positions temporarily.

The broader outlook for Suzlon Energy remains positive. The company concluded FY25 with a record order book of 5.6 gigawatts (GW), reflecting a sharp rise in demand for its wind energy solutions. Notably, its latest S144 turbine platform has already crossed 5 GW in confirmed orders, underlining Suzlon’s technological edge and the growing acceptance of its products in India’s rapidly evolving clean energy market.

Brokerage firms have remained optimistic despite today’s price dip. Motilal Oswal, for instance, recently raised its target price for Suzlon to ₹83 while maintaining a “Buy” rating, citing the company’s execution capabilities, strong order inflow, and consistent performance. ICICI Securities has also reiterated a bullish stance with a target of ₹76, while global firm Morgan Stanley has pegged its price target at ₹77, emphasizing the company’s potential to benefit from policy tailwinds and India’s ambitious renewable energy goals.

Suzlon’s management has also expressed confidence in sustaining the growth momentum. During the Q4 earnings call, the leadership highlighted continued investments in innovation, capacity expansion, and operational efficiencies, all aimed at strengthening the company’s position in both domestic and international markets.

While the stock's decline today may raise eyebrows, it is largely seen as a short-term market reaction to an extended rally rather than a reflection of any deterioration in fundamentals. For long-term investors, the current dip could even present a potential entry point, especially given Suzlon’s strong financial turnaround, robust order book, and strategic importance in India’s clean energy roadmap.

As markets remain volatile and investor sentiment fluctuates in response to global cues and macroeconomic indicators, Suzlon’s long-term narrative—centered around renewable energy growth, improved earnings visibility, and technological innovation—continues to resonate with analysts and market participants alike.