Suzlon Energy Ltd. shares will be in focus on Monday due to the below mentioned reasons as per the market news.
Income Tax Demand and Appeal
Shares of Suzlon Energy Ltd. are expected to be in focus during Monday's trading session as the company has received an Income Tax demand of ₹1.01 crore for FY17 from the Ahmedabad Income Tax Department. The demand pertains to a penalty imposed for the disallowance of late payments related to employee contributions to PF/ESI during FY 2016-17. Suzlon Energy plans to appeal the penalty and remains confident of achieving a favorable outcome.
Recent Tax Penalty Developments
In a positive development, the Income Tax Department waived off a penalty of ₹260.35 crore for dues pertaining to financial years 2015-16 and 2016-17, following a ruling in favor of the company from the Income Tax Appellate Tribunal (ITAT). This amount is equivalent to the company's quarterly profit of ₹200 crore for the second quarter ended September 2024.
Stock Performance
Suzlon Energy shares closed 1.38% lower on Friday at ₹62.05. Despite this recent dip, the stock has gained over 60% over the last 12 months.
Recent Ratings and Upgrades
CRISIL Ratings has upgraded Suzlon Energy's credit rating to 'CRISIL A' with a Positive Outlook, reflecting the company's robust performance and improved profitability. This marks the second rating upgrade by CRISIL in 2024, underscoring Suzlon's strong operational efficiencies and consistent quarter-on-quarter growth.
Strategic Developments
Suzlon Energy has also announced a significant 400 MW wind power order from Jindal Renewables, further solidifying its market leadership and contributing to India's clean energy transition. Additionally, Suzlon acquired a 51% stake in Renom Energy Services Private Limited, India's largest Multi-Brand Renewable Energy Operations and Maintenance Service company.
Conclusion
With a strong financial performance, positive rating upgrades, and strategic developments, Suzlon Energy Ltd. continues to show promising growth potential. Investors will be closely watching the company's appeal against the recent Income Tax demand and its overall performance in the coming quarters.
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