Suzlon's shares, which had touched an all-time high of Rs 86, are now moving like a tortoise for the last one month. The stock has gained only 1 percent. Before September, investors were predicting that the company's stock could cross the magical figure of Rs 100 before the end of the year, but due to the storm of heavy selling in the market, the share prices were also affected, and It fell from Rs 86 to Rs 64. Overall, there is a decline of about 23 percent since the all-time high. Now ED has taken strong action against the company and has imposed penalty.
Suzlon Energy Ltd said it has received a notice from the Enforcement Directorate-ED (Hyderabad) for delay in receipt of select export proceeds for shipments completed up to the financial year 2016-17 (FY17) by its now incorporated subsidiary Suzlon Wind International Ltd. Fine order has been received. It is informed that the office of the Joint Director, Enforcement Directorate, Hyderabad, has imposed a penalty of Rs 20 lakh on the company, some Rs. Regarding delay in receipt of export proceeds.
Suzlon said that with this the long running case with the investigating agency ED has now come to an end. On the stock-specific front, Suzlon shares closed 1.49 per cent lower at Rs 64.82 on Tuesday. At this closing price, it has given 68.45 percent return to investors on year-to-date (YTD) basis, while the benchmark BSE Sensex has gained 8.58 percent during the same period.
Kranti Bathini, director of equity strategy at Wealthmills Securities, said investors with high risk appetite can buy shares of Suzlon Energy. He also said that the company has faced corporate governance issues in the past and some of them still persist. Since there is a bullish trend in the wind energy sector, one can consider buying this stock on decline.
