Suzlon Energy Ltd. shares fell nearly 2% on Wednesday as investors reacted to the company's June-quarter earnings, which showed pressure on profitability despite robust revenue growth.
The stock slipped as much as 3.19% to Rs 46.49 during intraday trade after opening at Rs 48. It touched an intraday high of Rs 48.70.
The weakness followed Suzlon's June-quarter results, where consolidated net profit declined 5.9% year-on-year to Rs 305 crore from Rs 324 crore. Revenue, however, rose 22.3% to Rs 3,830 crore from Rs 3,132 crore, reflecting healthy execution and strong demand for wind energy solutions.
At the current price, Suzlon is down over 10% year-to-date and has declined more than 23% over the past 12 months, according to exchange data.
However, brokerages remain largely constructive on the renewable energy company's long-term prospects, arguing that temporary execution issues—not weakening demand—were behind the weaker-than-expected performance.
Centrum Broking remained the most bullish, reiterating its 'Buy' recommendation while trimming its target price marginally to Rs 74 from Rs 75, implying about 53% upside.
Motilal Oswal Financial Services maintained its 'Buy' rating with a target price of Rs 65, implying around 35% upside. The brokerage described the June quarter as a "soft quarter but on track for growth."
Nuvama Institutional Equities retained its 'Hold' rating but cut its target price to Rs 51 from Rs 56, implying a modest 6% upside from the current market price. The brokerage said the quarter was weaker than expected, with 506 MW of deliveries falling short of estimates and EBITDA margins coming in at 15.5% versus its 17.9% forecast.
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