Suzlon Energy Stock in Focus After Independent Director Quits; Nuvama Retains ‘Buy’ Rating

Suzlon Energy Stock in Focus After Independent Director Quits; Nuvama Retains ‘Buy’ Rating

Keywords: Suzlon Energy, independent director, resignation, Nuvama, buy rating

Mumbai, March 8, 2023: Shares of Suzlon Energy came into focus on Wednesday, March 8, after independent director Sanjeev Agarwal resigned from the company’s board with immediate effect.

Resignation of Independent Director

Agarwal cited “personal reasons” for his resignation, according to a regulatory filing by Suzlon. He had joined the company’s board in April 2021 and was a member of the audit committee.

Nuvama Retains ‘Buy’ Rating

Despite the resignation, brokerage firm Nuvama Alternative and Quantitative Research (NAQR) retained its ‘buy’ rating on Suzlon Energy shares. The firm has a target price of ₹9.50 per share, implying an upside potential of 13.5% from the current market price.

Positive Outlook

NAQR analysts believe that the company is well-positioned to benefit from the growing demand for renewable energy, particularly in the wind power sector. The firm also expects Suzlon’s financial performance to improve in the coming quarters due to higher order bookings and cost optimizations.

Stock Performance

Suzlon Energy shares opened lower on Wednesday, but later recovered some losses to trade at around ₹8.30 per share on the Bombay Stock Exchange (BSE) at the time of writing. The stock has been volatile in recent months, reflecting broader market sentiment and uncertainty related to the global energy crisis.

Outlook

While the resignation of an independent director can raise some concerns, analysts remain optimistic about Suzlon Energy’s long-term prospects. The company is a key player in the wind power industry and is expected to benefit from the transition to cleaner energy sources. Investors should monitor the company’s financial performance and the broader macroeconomic environment before making any investment decisions.