Shares of Suzlon Energy Ltd. declined for a fourth consecutive session on Tuesday, December 2, adding to recent investor concerns. Despite the prolonged drop, the stock has not yet entered technically "oversold" territory, with its Relative Strength Index (RSI) at 37. An RSI below 30 typically indicates an oversold condition.

The stock has corrected more than 25% over the past six months, prompting questions about whether it represents a buying opportunity.

Shorting Pressure in F&O Segment

Commenting on CNBC Awaaz, Ashish Bahety, Technical and Derivative Research Analyst, noted that Suzlon’s inclusion in the futures and options (F&O) segment has enabled fresh short positions, contributing to the downward pressure. He cautioned that as an F&O stock, aggressive shorting could persist. Bahety advised investors to maintain a strict stop loss at ₹51 and to consider exiting on any meaningful pullback.

Strong Q2 Earnings Performance

Suzlon reported robust earnings for the September quarter, surpassing street estimates. The company’s net profit surged to ₹1,278 crore, compared to ₹200 crore in the same period last year, aided by a one-time tax write-back of ₹718 crore. Even excluding this exceptional item, profit more than doubled year-on-year.

Revenue jumped 84% to ₹3,870 crore, while EBITDA increased 2.5 times to ₹720 crore. The EBITDA margin expanded by 460 basis points to 18.6%.

Analyst Sentiment Remains Positive

Despite the recent price weakness, analyst ratings remain largely bullish. Of the nine analysts covering Suzlon Energy, eight have a "Buy" recommendation, and one suggests "Hold."

Shares of Suzlon Energy were last trading 0.61% lower at ₹53.39. The stock is down 18% so far in 2025.