Understanding Suzlon's 99.6% Fall: Reasons, Recovery & Budget Impact

Join me, CA Rachana Ranade, as we dive into the fascinating story of Suzlon Energy, from its meteoric rise to its drastic fall of over 99%, and explore the reasons behind its recent correction, Q3 updates, and budget impact.

Here are 22 clean bullet points summarizing the video:
* The stock of Suzlon Energy corrected by more than 40% recently
* However, it had a bigger fall of 99.6% in the past, from ₹422 to ₹1.65
* Founded by Tulsi Tanti and his brothers in the early 1990s
* Initially, they ran a textile business that incurred high power bills
* They took a bold step to buy windmills to power their factory
* This decision led to the founding of Suzlon Energy in 1995
Reasons for the 99.6% Fall
* Aggressive expansion and borrowing heavily to acquire European companies
* Debt reached ₹14,870 crores
* The 2008 financial crisis froze orders, leaving the company buried under debt
* The company took strategic measures like debt restructuring
* Management was able to turn around the company
* Today, Suzlon is India's number one wind energy service company
* Broad-based selling: the entire market started to fall, taking Suzlon with it
* Resignation of key managerial personnel, Mr. Ishwar Chand Mangal
* Industry headwind due to Donald Trump's victory speech against renewable energy
* Delivers were up by 75% QoQ and 163% YoY
* Revenue was up by 42% QoQ and 91% YoY
* EBITDA was up by 70% QoQ and 102% YoY
* PAT was up by 93% QoQ and YoY
* Wind turbine generator (WTG) segment: revenue increased by 99%, EBITDA more than 5x
* Operation and maintenance services division (OMS): revenue increased by 11.4%, EBITDA by 12.4%
* SE Forge: revenue dropped by 0.92%, EBITDA by 6.9%
Order Book and Outlook
* The company has a highest ever firm order book of 5.5 GW
* Management expects this order book to be executed in the next two years
* CRlSIL has upgraded the rating of the company to A/positive
* Allocation of ₹48,396 crores towards the power sector, including an increase for new and renewable energy
* Out of this allocation, 20,000 crores went to PM Surya Ghar: muft Bijli Yojana, a solar scheme
* Wind energy got an allocation of ₹500 crores, a drop of 37%
* The company is not heavily reliant on budgetary allocations, but may face some negative sentiment at the industry level.

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the long-term implications of Suzlon Energy's recent 40% stock price drop, considering its turnaround from a 99.6% decline earlier? Feel free to share your thoughts in the comments!