Have you ever wondered why even when a company earns good profits, its share prices start falling? Something similar is happening with ‘Suzlon Energy’, which has made investors a little worried. Suzlon shares have been falling continuously for the last few days. The decline continued on Tuesday, December 2 and this was the fourth consecutive day when the stock was under pressure. In the last six months this stock has fallen by more than 25 percent. Now the question is, is this a good opportunity to buy the stock, or will it fall further?
There is a scale called RSI in the stock market, which is called Relative Strength Index. It tells whether a stock is oversold or not. Generally, if the RSI goes below 30, the stock is considered oversold and there is a possibility of an uptrend. Suzlon’s RSI is currently at 37, which means it has not yet entered the ‘oversold’ zone.
While answering a viewer’s question on CNBC Awaaz, a technical analyst Ashish Baheti gave his opinion on this. He said that ever since Suzlon has been included in the F&O (Futures & Options) segment, the opportunities for shorting have increased. Due to this, many new short positions have been created and selling pressure on the stock has increased. He believes that since it is an F&O stock, this process of shorting can continue aggressively.
Result is fine, but why does the selling continue?
Suzlon Energy’s second quarter results recently were better than market expectations. The net profit of the company has increased from ₹ 200 crore last year to ₹ 1,278 crore this time. Yes, it includes tax write-back of Rs 718 crore, but even if it is removed, profit is still up by more than 100 per cent.
Revenue has also increased by 84% from ₹2,103 crore to ₹3,870 crore. The company’s EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization) has increased by almost 2.5 times to ₹ 720 crore. EBITDA margin has also improved from 14% to 18.6%.
Despite such excellent results, the stock is falling. One reason for this could be a correction, which is natural after a boom. Even though the stock is falling, 8 out of 9 analysts have given a Buy rating for Suzlon, and only one has given a ‘Hold’ rating. This means that big market experts have full confidence in the future of the company.
What should small investors do?
Analyst Ashish Baheti advises that investors should maintain a stop loss of Rs 51. He also suggested that if there is a ‘pullback’ in the stock, then investors should think about exiting.
Today (3 December 2025) shares of Suzlon Energy were trading at Rs 52.48. There has been a decline of 19% since the beginning of last year.
(Disclaimer: The information given here is based on expert advice. Before taking any decision on this basis, consult your certified investment advisor. StuffUnknownwill not be responsible for any profit or loss of yours.)
