Suzlon Energy Shares Fall 22% in 2025: Opportunity to Buy or Time to Stay Cautious?
Business and Industry Overview:
Suzlon Energy Ltd is a big company that makes wind turbines, which turn wind into electricity. It was started in 1995 by Tulsi Tanti and is based in Pune, Maharashtra. Suzlon is one of the largest companies in the world that makes wind turbines. It has set up more than 20.9 gigawatts (GW) of wind energy in 17 countries across places like Asia, Europe, and the Americas. Suzlon makes all parts of wind turbines, such as blades, towers, generators, and nacelles (the part that holds the turbine’s inner parts). They do everything, from designing the turbines to making the parts, installing them, and maintaining them. This makes Suzlon a complete service provider for wind energy projects. They offer wind turbines that range from small ones that generate 600 kW of power to larger ones that generate 6.15 MW. The company helps businesses and people who want to use wind energy for their power needs. Suzlon is also working on more projects and has won a big order to set up many wind turbines in Rajasthan. This shows that they are growing and getting more projects. Suzlon’s stock price has been going up, showing that people are interested in the company. Suzlon is trying to reduce its debt by selling some parts of the business that are not important. The company is also getting help from other investors to improve its finances. Overall, Suzlon is helping the world move to clean and renewable energy by producing wind power and growing its business.
Latest Stock News:
Shares of Suzlon Energy Ltd moved strongly on Monday, crossing the important Rs 60 level. The stock went up by 9.50% and closed at Rs 60.31. However, it has dropped by 14.59% in the last six months. Recently, Suzlon got a new order for a wind power project of 100.8 MW from Sunsure Energy. The project will be built in Maharashtra’s Jath region. Suzlon will supply 48 wind turbine generators, each producing 2.1 MW of power. Some analysts are positive about the stock for the short term. If the stock moves above Rs 62, it could start a bullish rally. Nilesh Jain, VP at Centrum Broking, said, “We’ve seen a good breakout today. The stock may move towards Rs 62-64. Keep a stop loss at Rs 57.” Kunal Kamble, Senior Technical Research Analyst at Bonanza Group, also said that moving above Rs 62 could show strong buyer interest and lead to more growth. The stock is trading higher than its 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day moving averages but lower than its 150-day and 200-day averages. Its 14-day relative strength index (RSI) is 63.78, which means it is neither overbought nor oversold. According to BSE, Suzlon’s price-to-earnings (P/E) ratio is 172.31, and its price-to-book (P/B) ratio is 21.16. The earnings per share (EPS) is 0.35, and its return on equity (RoE) is 12.36%. Suzlon has a one-year beta of 1.2, meaning the stock is highly volatile. As of March 2025, the promoters of Suzlon own 13.25% of the company.
Potentials:
Suzlon Energy Ltd has clear plans for the future to grow in the renewable energy business. First, Suzlon wants to increase the number of wind turbines it installs. They plan to install 4 gigawatts (GW) of wind energy in FY25, 6 GW in FY26, and 8 GW in FY27. This will help Suzlon become a leader in wind energy in the coming years. Second, Suzlon is improving its technology. They are working on better wind turbines and hybrid energy solutions. This will make the turbines more efficient, reliable, and cheaper to use. Suzlon wants to stay competitive and meet the growing demand for renewable energy. Most of Suzlon’s work is in India, and they want to focus on local projects. About 85% of the company’s employees and factories are in India. By working more on projects in India, Suzlon will help the country reach its renewable energy goals. This also matches the Indian government’s plan to make more energy equipment locally and reduce imports. Suzlon is also looking at international markets. They are taking part in global renewable energy events to show their technology and find new business opportunities. This will help them grow and reach more countries. Lastly, Suzlon is committed to helping the environment. They are supporting India’s green hydrogen plan, which aims to produce 5 million tons of green hydrogen per year by 2030. Suzlon also wants to help India reach its goal of having 125 GW of renewable energy by 2030. Suzlon plans to do this by continuing to develop and install wind energy projects.
Analyst Insights:
- Market capitalisation: ₹ 80,255 Cr.
- Current Price: ₹ 59.3
- 52-Week High/Low: ₹ 86.0 / 37.9
- P/E Ratio: 68.6
- Dividend Yield: 0.00%
- Return on Capital Employed (ROCE): 24.9%
- Return on Equity (ROE): 28.8%
Suzlon Energy is doing well in the renewable energy market. The company has installed over 20 GW of wind energy in 17 countries. This shows their strong presence in the industry. They have grown their profits by 19.7% every year for the past 5 years. In the last year, their profits increased by 136%. This is a good sign for future growth. The company has worked hard to reduce its debt. Now, Suzlon is almost debt-free. This makes the company more financially stable and safer for investors. Their profit margins are strong, ranging from 14% to 18%. This shows they manage costs well while still making a good profit. Suzlon’s stock price is currently at a P/E ratio of 68.6. This is higher than many competitors. However, it is reasonable given the company’s future growth. The stock is also below its book value. This could be an opportunity for investors. Suzlon keeps winning new projects. For example, they recently got a 100.8 MW project from Sunsure Energy. This will bring in more revenue. While Suzlon does not pay dividends, its growth potential makes it attractive for long-term investors. In summary, Suzlon Energy has strong financials, growing profits, and a reduced debt. These are all good signs for investors. The higher stock price and no dividend may be a downside for some. But, for long-term growth, Suzlon looks like a good investment.