Will Suzlon Stock Break its Losing Streak? Refund Incoming, New Factories Planned

Investors will keep a close watch on Suzlon Energy when markets open Monday. The wind power giant saw its penalty slashed dramatically, flagged big plans for growth, yet bears a heavy technical cloud over its stock as it trades near Rs51.

Penalty slashed but dust not settled

In a filing on Friday, Suzlon revealed that a penalty imposed on its subsidiary (now merged) for e-way bill violations has been slashed to Rs50,000 from the original  Rs19.5 lakh. The balance will be refunded.

Separately, the company paid Rs 1 lakh in penalty to the Central Ground Water Authority (CGWA) for late submission of a groundwater NOC application, a regulatory lapse it said will not materially impact operations.

These moves may ease some investor anxiety but they come against a backdrop of weak technical momentum.

Big expansion and bets on future demand

Suzlon is pushing ahead with ambitious capacity expansion. The company plans to add three AI-enabled "smart-blade" manufacturing units in Gujarat and Karnataka, with a third location yet to be finalised. Once operational, these factories will supplement Suzlon's existing manufacturing base, accelerating execution of its robust 6.2 GW order book.

The expansion will be backed by an annual capex allocation of Rs500-550 crore, funded from internal accruals. Suzlon says this is part of a broader strategy to modernise its 15 factories - introducing automation, robotics, digital workflows and quality‑control systems to improve efficiency and output.

If successful, the move could help Suzlon scale up manufacturing, meet rising wind‑energy demand, and reduce reliance on external supply chains - a potential long‑term growth driver.

Stock technicals show caution

According to analysts (Choice Broking), Suzlon is trading around Rs51.3 after a >15% drop over the past month, reflecting clear downward pressure. The stock is below all major exponential moving averages (EMAs), which continue trending downward - a classic bearish pattern.

Every rebound attempt reportedly faces supply pressure; volume remains high, but mostly on down days, suggesting active distribution, not accumulation. Choice Broking flags immediate support zones around Rs48-Rs47.5, with a failure below that potentially pushing Suzlon toward Rs45-Rs44. On the upside, any bounce toward Rs53-Rs55 is likely to meet resistance near declining EMAs.

The firm advises investors and short‑term traders to avoid fresh buying until Suzlon manages a firm close above the 20‑day EMA , a necessary condition for any sustained rebound.

What to watch this week

• Whether the refund of Rs19.04 lakh materialises cleanly, a small but symbolic financial relief.
• Progress updates on the three new AI‑enabled blade factories and how soon they come online.
• Stock reaction once markets open. A bullish turn will need volume‑backed price strength.
• Any fresh contracts or order wins, which could support the growth narrative.