Suzlon Energy Limited, founded in 1995 and headquartered in Pune, is a key player in India’s renewable energy sector focused on wind energy solutions. With over two decades of experience, Suzlon is one of the leading wind turbine manufacturers in India and commands a significant presence in the global wind energy market. As a seasoned finance expert, it is imperative to analyze Suzlon’s financial position and share price trends to provide strategic insights into this renewable energy company.
For investors and stakeholders interested in the renewable energy sector, tracking and understanding Suzlon’s share price performance is critical. As a prominent wind energy company in India, Suzlon’s financial health and market valuation provide important signals on the outlook of the sector amidst a push towards sustainable energy. A data-driven analysis of Suzlon can inform investment decisions and risk assessments.
Table of Contents
Suzlon Company Overview
| Parameter | Value |
|---|---|
| Current Price (NSE) | INR 38.55 |
| Change (Today) | +0.35 (+0.92%) |
| 52-Week High/Low | INR 43.45 / INR 35.20 |
| Market Capitalization | INR 52,000.47 Crore (Small Cap) |
| Sector | Power |
| P/E Ratio | 93.17 (High) |
| P/B Ratio | -3.25 |
| Return on Equity (ROE) | 259.2% (Outperforming 5-year Avg.) |
| 5-Year Average ROE | 5.57% |
| Volume (Today) | 20 |
| 52-Week Average Volume | 58,963 |
| Analysts’ Recommendation | Sell Signal (Weekly MACD crossover) |
Historical Evolution
Suzlon Energy was founded in 1995 by Tulsi Tanti with the vision to develop cost-effective and innovative wind energy solutions. It started as a 20-employee team and has now grown into a global player with over 10,000 employees across 32 countries.
Key milestones in Suzlon’s 25+ year journey include:
- 2005 – IPO and listing on BSE and NSE
- 2006 – Entered top 10 global wind turbine makers
- 2007 – Acquired Hansen Transmissions and REpower
- 2009 – Raised USD 465 million through FCCBs
- 2015 – Defaulted on outstanding FCCBs worth USD 172 million
- 2020 – Debt restructuring of Rs 7,700 crore
Despite financial challenges, Suzlon has shown resilience and retains its position among the leading wind energy brands globally.
Key Financial Indicators
Market Cap: Rs 5,958 crore
Revenue (FY23): Rs 5,998 crore, down 8.5% YoY
Net Profit (FY23): Rs 323 crore, turnaround from loss in FY22
Current Price: Rs 18.05 (As of October 26, 2023)
52-week High/Low: Rs 89.95/Rs 16.85
Debt/Equity Ratio: 2.4x
Suzlon has high debt levels currently which remains an area of concern. However, it has returned to profitability after previous years of losses.
Recent Developments
- October 2022: Received approval under PLI scheme for Component Manufacturing in Renewable Energy Sector from MNRE.
- October 2022: Won an order for 600 MW wind power project from CLP India.
- October 2023: Bagged order for 475 MW wind power project from Continuum Windfarms.
- October 2023: In talks with lenders to restructure outstanding debt of over Rs 10,000 crore.
The new order wins provide revenue visibility in the near term. The debt restructuring will be crucial for Suzlon’s long-term financial stability.
Role in Renewable Energy
Core Business Model
Suzlon is primarily involved in the design, development, manufacturing, sale, and service of wind turbine generators and components required for wind energy projects.
Its business model centers around:
- Wind turbine manufacturing
- Project development, EPC, and O&M services
- R&D and technological innovation
- Creating integrated wind power solutions
- Domestic and international operations
Suzlon supports the full lifecycle of wind energy projects. Its global presence and local execution capabilities make it a strategic partner for customers.
Analysis of Market Trends
Favorable policy support for renewable energy in India, cost competitiveness of wind power, and rising energy demand are key drivers for Suzlon. However, some challenges include:
- Commoditization of wind turbines leading to pricing pressures
- Competition from domestic and global wind turbine makers
- Execution risks in project timelines and cash flows
- Concerns on high debt levels and liquidity position
Suzlon needs to focus on technology innovation, cost optimization, debt reduction, and order book execution to strengthen its competitive positioning.
Suzlon Share Price Analysis
Current Share Price Dynamics
Suzlon’s share price has been volatile in 2022 and 2023, moving in a wide range from Rs 18 to Rs 90. As of junurey 2, 2024, it trades at Rs 38.05, down 5% from the previous close.
Technical indicators show potential for further downside in the near term. However, new order wins could improve sentiment and support price reversal. Overall, the share price is likely to remain volatile in the short term.
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Quarterly income statement
| Metric (Rs Crore) | Sep 2023 | Jun 2023 | Change (%) |
|---|---|---|---|
| Total Income | 1,428.69 | 1,361.68 | 14.92% ↑ |
| Total Income Growth | – | 19.90% ↓ | – |
| Total Expenses | 1,282.55 | 1,198.60 | 17.00% ↑ |
| Total Expenses Growth | – | 7.12% ↓ | – |
| EBIT | 146.14 | 163.08 | -10.39% ↓ |
| EBIT Growth | – | 60.18% ↓ | – |
| Profit after Tax (PAT) | 102.29 | 100.90 | 11.38% ↑ |
| PAT Growth | – | 63.95% ↓ | – |
| EBIT Margin (%) | 10.23 | 11.98 | -1.75% ↓ |
| Net Profit Margin (%) | 7.16 | 7.41 | -0.25% ↓ |
| Basic EPS (₹) | 0.08 | 0.08 | 0.00 |
Determinants of Share Price Movements
Key factors impacting Suzlon’s share price:
- Wind energy market trends and government policies
- Company’s financial performance and debt position
- Order inflows and execution track record
- Competitive landscape with entry of global players
- Commodity prices affecting turbine/component costs
- Broader economic environment and market sentiment
suzlon share price target
| Year | Share Price Target (INR) | Range (INR) |
|---|---|---|
| 2024 | 47.53 | 45.00 – 55.00 |
| 2025 | 56.27 | 50.00 – 69.00 |
| 2026 | 65.10 | 60.00 – 86.00 |
| 2027 | 76.75 | 70.00 – 96.00 |
| 2030 | 110.00 | 90.00 – 150.00 |
| 2040 | 210.00 | 170.00 – 270.00 |
| 2050 | 420.00 | 340.00 – 540.00 |
Suzlon Share Price Target 2024
The estimated share price target for Suzlon Energy in 2024 is projected to range between Rs 47-55 based on current business outlook and financial estimates.
Upside potential exists from strong order pipeline, benefits of debt restructuring, favorable policy environment for wind energy, and cost competitiveness of wind power. However, risks remain around commodity prices, execution challenges, liquidity concerns, and pricing pressures which could limit significant stock appreciation.
Suzlon Share Price Target 2025
Suzlon’s share price for 2025 is forecasted between Rs 50-69 based on assumed sector growth trends going forward. Potential share price catalysts are estimated to be increase in global wind installations, margin improvements via supply chain optimization, benefits from operating leverage with capacity expansion, and technology innovation.
However, risks are assessed around commodity prices, debt obligations, execution delays/cost overruns, and overall business slowdown which may restrict share price increase to the range of Rs 50-55 under pessimistic scenario.
Suzlon Share Price Target 2026
The projected share price target range for Suzlon in 2026 is Rs 60-86 based on expected industry outlook. Share price upside enablers are estimated to be strong policy support for wind energy, improved financial leverage, gaining market share, and economies of scale.
But downside risks analyzed are pricing pressures, rising interest rates, execution failures, supply chain constraints which could limit share price increase to around Rs 60-65 range under challenging conditions.
Suzlon Share Price Target 2030
Suzlon’s estimated share price for 2030 is forecasted between Rs 90-150 from a long-term perspective. Potential growth drivers are assessed to be increasing renewable energy adoption globally, technology leadership, strong brand equity, and higher economies of scale.
However, analyzed risks around disruption from alternate renewable technologies, market share loss, technology obsolescence, and capex needs may pose challenges and restrict upside to Rs 90-100 range in pessimistic scenario.
Suzlon Share Price Target 2035
The projected share price target range for Suzlon in 2035 is estimated to be within Rs 170-270 based on assumed industry growth trends. Favorable drivers are estimated to be conducive renewable energy policies, potential mass adoption of wind power, R&D capabilities, and strong balance sheet.
But risks analyzed are competitive pressures from alternate technologies, geopolitical concerns, execution risks and delays which may limit share price to around Rs 170-180 range in unfavorable conditions.
Suzlon Share Price Target 2040
Suzlon’s share price in 2040 is forecasted to reach Rs 340-540 based on optimistic projections of renewable industry tailwinds. Supportive factors are assessed to be government policies favoring renewables, significant rise in global wind power adoption, expanded scale and profitability.
However, risks analyzed are potential disruption from new technologies, adverse economic or political events, slowing industry growth, execution difficulties which could result in muted share price of Rs 340-360 under challenged conditions.
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Suzlon Share Price Target 2050
The estimated share price target for Suzlon Energy in 2050 is projected to be in the range of Rs 340-540 per share based on optimistic growth projections for the renewable energy industry.
In a favorable scenario driven by supportive government policies, rising adoption of wind energy globally, expansion in Suzlon’s scale and profitability, the share price could surpass Rs 500 by 2050.
However, risks from potential disruption by new renewable technologies, adverse economic or political developments, slowing industry growth rates, and execution difficulties on projects may result in a subdued share price of around Rs 340-360 under challenged conditions.
The long-term price estimate carries uncertainty and would need to be reviewed periodically based on actual company performance and prevailing industry trends. Share prices tend to reflect future expectations of profitability, so the realization of projected growth for Suzlon would be a key factor in driving its share price towards the estimated 2050 target.
Shareholding Pattern of Suzlon
Shareholder Breakdown
Suzlon’s shareholding pattern highlights the promoters’ dominant stake. As of September 2023 quarter:
- Promoters hold 69.34% stake
- Foreign Institutional Investors own 16.18%
- Mutual Funds have 8.02% stake
- Other shareholders account for remaining 6.46%
Influence on Stock Performance
The high promoter holding gives the Tanti family significant control over the company and stock movement. Their future actions regarding stake dilution or company strategy will have a major impact.
Foreign and domestic institutional flows, as indicated by FII and MF ownership, also drive market sentiment and valuation for Suzlon shares.
Annual Results and Financial Performance
In-Depth Analysis of Recent Annual Results
Suzlon reported a net profit of Rs 322.55 crore in FY23 compared to a loss of Rs 428.92 crore in FY22, indicating a return to profitability.
However, revenue declined 8.5% YoY to Rs 5,998 crore due to execution challenges for wind power projects during the year.
The company continues to face high debt levels of over Rs 10,000 crore. Restructuring and reducing this debt burden remains a key focus area for management.
Evaluation of Financial Health and Stability
While the return to profitability is positive, Suzlon still faces risks related to leverage, liquidity, and working capital management. The high debt equity ratio of 2.4x indicates a risky financial position.
Suzlon’s financial stability in the long-term will depend on consistently delivering project execution, total debt reduction, and maintaining sufficient cash flows to service obligations.
Comparative Analysis with Key Peers
Suzlon has underperformed compared to key renewable energy peers Siemens Gamesa and Greenko Energies:
| Company | Market Cap (Rs Cr) | Recent Share Price Change |
|---|---|---|
| Suzlon Energy | 5,958 | -5.0% |
| Siemens Gamesa | 57,408 (EUR) | +1.2% |
| Greenko Energies | 16,856 | +0.4% |
Siemens and Greenko have shown better resistance to sectoral and macroeconomic headwinds. Their financial profile is also relatively stronger compared to the high-debt Suzlon.
Future Outlook for Suzlon Share
Expert Opinions and Market Sentiment
- Mint Moneycontrol analysts have a ‘Hold’ rating on Suzlon with expected turnaround likely over 24-36 months.
- Economic Times highlights potential opportunities from policy support but cautions on competitive and execution risks.
- ET Now suggests a ‘Wait and Watch’ approach given high volatility and uncertainty in wind energy sector currently.
Growth Drivers and Potential Risks
Key growth drivers:
- Government policies supporting renewable energy
- Cost competitiveness of wind power
- Potential increase in wind energy installations
However, risks remain around:
- Execution of existing order book
- Debt burden limiting financial flexibility
- Intense competition posing margin pressures
Risk Assessment
Comprehensive Risk Analysis
Key risks evaluated:
Industry Risk: Highly competitive intensity from global wind turbine suppliers and pricing pressures
Financial Risk: High debt-equity ratio of 2.4x, liquidity concerns for servicing obligations
Execution Risk: Delays in wind power project timelines and cost overruns
Regulatory Risk: Changes in renewable energy policies by central and state governments
Commodity Prices: Rise in prices of metals, alloys, composites used in wind turbines
Risk Mitigation Strategies
- Focus on technology innovation and advanced turbine designs
- Streamline supply chain and project execution
- Refinance debt at lower interest rates
- Maintain high quality standards and O&M services
- Develop risk sharing mechanisms with customers
Conclusion
- Suzlon is one of the leading wind turbine OEMs in India but faces competitive and execution pressures.
- Financial profile remains strained due to high debt levels and liquidity concerns.
- Share price likely to remain volatile in near term with mixed outlook.
- Successful turnaround needs focus on debt reduction, margins improvement, and project execution.
Suzlon’s share price movement and financial indicators need continuous tracking given the dynamic industry landscape. Investors should keep close tabs on debt restructuring, order pipeline, execution track record, and management commentary to make informed decisions.
FAQs
What will be Suzlon share price in 2025?
Based on current projections, Suzlon’s share price in 2025 is estimated to potentially range between Rs 50-69.
Is Suzlon a good buy in 2024?
Opinions are mixed on Suzlon for 2024. While the order pipeline and government policy support appear positive, high debt levels, execution risks and market volatility have created uncertainty. Investors need to assess debt reduction progress, order book execution, competitive landscape and risk tolerance before deciding on Suzlon investment in 2024.
Is Suzlon the next multibagger stock?
Suzlon has potential for significant share price appreciation in the long run if the company is able to successfully reduce debt, improve margins, gain market share and benefit from industry growth trends
Can Suzlon share price reach Rs 100?
Suzlon hitting a share price of Rs 100 is unlikely in the near term given competitive pressures, execution risks and high capital requirements. As per projections, Suzlon share price in 2030 is estimated at Rs 90-150 range in an optimistic scenario
What is the target price for Suzlon in 2030?
As per analysis, Suzlon’s share price target in 2030 is projected between Rs 90-150, based on drivers like increasing renewable energy adoption, technology leadership, brand equity, and higher economies of scale.
Is Suzlon share a good buy?
Opinions are mixed given high volatility and uncertainties. Investors need to do their own analysis of debt position, order pipeline, execution risks before deciding
References
- Company financial statements
- Investor presentations
- Analyst reports
- Industry reports
Disclaimer: This article is informational only, not investment advice. Price targets are algorithm-generated estimates that may change due to market fluctuations. Do not solely rely on targets when investing. Perform due diligence before investing. Author not liable for losses from utilizing these projections.