Tag Wind Energy

Suzlon Ltd
Suzlon Energy Stock Falls 17% – Temporary Setback or Long-Term Opportunity?

Business and Industry Overview:  

Suzlon Energy Ltd is an Indian company. It makes wind turbines. It gives clean energy solutions. It started in 1995. The founder is Tulsi Tanti. The head office is in Pune, Maharashtra. The head office is called “One Earth”. It is a green building. It has Platinum LEED and GRIHA 5-star rating. It is one of the greenest office campuses in the world. Suzlon Group is a top company in clean energy. It is helping the world use more clean energy. Suzlon works in 17 countries. These include Asia, Australia, Europe, Africa, and the Americas. Suzlon has strong skills in clean energy systems. It makes good and strong products. It also does research and development (R&D). It has over 20 years of experience. Its systems give high output and more returns to customers. Suzlon has set up over 20,940 MW of wind power in the world. The company cares about nature, people, and growth. It works in a clean and responsible way. In the past, Suzlon had money problems. But now it is doing well. In August 2024, its market value became ₹1 lakh crore. In May 2024, Suzlon got a big order. It is from Juniper Green Energy. The project is for 402 MW of wind power in Rajasthan. Suzlon will install 134 wind turbines. Each turbine has 3 MW of power. But they also said there are some work challenges. Suzlon wants to give clean energy. It wants to grow and help the world use green power. 

Latest Stock News: 

Suzlon Energy is a clean energy company. It makes wind turbines. As of April 10, 2025, the stock price has moved up and down many times. On April 9, the stock fell by 3.64%. It touched ₹51.45 during the day. This fall was more than other clean energy companies, which fell 2.46%. In the last week, the stock went down by 10.84%. In the last month, it fell by 6.85%. In 2025, it will have fallen by 17.79%. But in the long term, the stock did well. In the last 3 years, it went up by 367.84%. In the last 5 years, it went up by 2095.52%. On April 7, 2025, the stock opened at ₹46.90. This was a big drop of 15.34% from ₹55.40 on April 4. It later went up to ₹51.02. The drop happened because the company got a fine. The fine was for not paying customs duty. In March 2025, the company said some orders were cancelled or made smaller. These orders were from January. But still, the total order size became bigger. It went from 5,523 MW on January 28 to 5,622 MW on March 28. Experts from Motilal Oswal gave a “buy” rating for the stock. They gave a target price of ₹70. This means the stock may go up by 21.5%. So, even with problems, many people still believe the company has a good future. 

Potentials: 

Suzlon Energy has announced a very big achievement. The company received India’s largest-ever wind energy order from NTPC Green Energy Limited (NGEL). NGEL is the renewable energy branch of NTPC Limited, which is the biggest government energy company in India. This order is for 1,166 megawatts (MW) of wind energy. As part of this deal, Suzlon will install 370 wind turbines. Each turbine will have a power capacity of 3.15 MW. These turbines are the S144 model, and they will be placed on special Hybrid Lattice Tubular (HLT) towers. The entire project will be set up in three different locations in Gujarat. The electricity made from these wind turbines will be able to power around 3 million homes. This is a very large project and will be the first time a government company (PSU) is doing such a big wind energy project in India. It will also help NTPC Green Energy increase its wind energy portfolio and reach its goal of adding 60 GW of renewable energy by 2032. This project is very important for Suzlon. It shows that Suzlon is back to working with big government energy companies. The company said this is a proud moment and a big step for clean energy in India. The project will also help Gujarat become a leader in renewable energy. Suzlon will not only supply the turbines, but also take care of the full setup—this includes transporting, installing, testing, and maintaining the turbines. The company said it will make sure the project is completed on time and of high quality. This project also supports the Indian government’s “Make in India” plan. The turbines will be made in India using local factories and workers. This will boost local jobs and technology. Suzlon’s total order book is now close to 5,000 MW as of September 3, 2024, because of this big deal. Suzlon’s Vice Chairman, Girish Tanti, said this is a strong partnership with NTPC Green Energy and a big milestone for both companies. Suzlon’s CEO, JP Chalasani, said this is just the beginning and more big projects will come in the future. In short, this is a historic project for Suzlon and India’s renewable energy journey. It will help reduce pollution, create jobs, and support clean energy for millions of people. 

Analyst Insights: 

  • Market capitalisation: ₹ 69,329 Cr. 
  • Current Price: ₹ 51.2 
  • 52-Week High/Low: ₹ 86.0 / 37.9 
  • P/E Ratio: 59.2 
  • Dividend Yield: 0.00% 
  • Return on Capital Employed (ROCE): 24.9% 
  • Return on Equity (ROE): 28.8% 

Suzlon Energy is doing well. Its sales and profit have grown more than 90% compared to last year. The company has many new orders. It is also working better and faster now. Suzlon has reduced its debt. Because of this, it pays less interest. Its profit margins are also better. The company is focusing on clean energy, which has good future demand. But the stock is expensive now. It is trading at a high P/E of 59.2 and 15 times its book value. This means the price may be too high at the moment. There are some other problems. Promoter holding is only 13.2%, which is low. The company does not give dividends. Also, debtor days have increased from 125 to 161, which means it takes longer to get money from customers. When we compare with other companies like Inox Wind and Orient Green, Suzlon’s ROCE and ROE are lower. This means it uses money less efficiently than others. In the long term, Suzlon has good chances because of the clean energy market. But now the price is high, and there are some risks. So, it is better to hold the stock or sell some part and book profit, especially if you bought it at a lower price. 

Adani Green Energy Ltd
Adani Green Energy Ltd: Pioneering India’s Clean Energy Future

Company Overview 

Established in 2015, Adani Green Energy Limited (AGEL) is one of India’s leading renewable energy companies, dedicated to harnessing solar and wind power for a sustainable future. Headquartered in Ahmedabad, Gujarat, AGEL is a key subsidiary of the Adani Group, a diversified conglomerate renowned for its contributions across various industries. AGEL operates a robust portfolio of renewable energy assets, with projects strategically located across India. As of 2024, the company boasts an operational capacity of over 8 GW and a total portfolio of nearly 20 GW, including assets under construction. AGEL is committed to achieving its ambitious target of 45 GW renewable capacity by 2030, reinforcing its role as a global leader in clean energy. 

The company has established itself as a pioneer in adopting cutting-edge technology and innovative practices. AGEL integrates artificial intelligence and machine learning to optimize energy production and enhance operational efficiency. Its extensive use of predictive maintenance ensures reliability and cost-effectiveness, making it a preferred partner for power utilities and governments. A cornerstone of AGEL’s strategy is its long-term Power Purchase Agreements (PPAs) with reputed off-takers, which ensure stable cash flows and reduced market volatility. These agreements, often spanning 25 years, reflect the trust and confidence of stakeholders in AGEL’s capabilities. 

Adani Green has also made significant strides in sustainability and environmental stewardship. By offsetting millions of tons of carbon dioxide emissions annually, the company actively contributes to India’s climate action goals and aligns with global ESG (Environmental, Social, Governance) standards. AGEL’s efforts have been recognized globally, including awards for excellence in renewable energy development and corporate responsibility. With its strong domestic foundation, forward-looking strategies, and unwavering commitment to sustainability, Adani Green Energy Limited continues to lead India’s transition to a green energy future. By leveraging its innovative approach and operational expertise, AGEL aims to play a pivotal role in shaping a sustainable and energy-secure world. 

Returns Summary

YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
-35.44% -2.02% -43.10% -32.78% -42.93% -25.60% 592.94% 

Result Highlights

Adani Green Energy Limited (AGEL) has reported robust financial and operational performance for the second quarter of fiscal year 2025 (Q2 FY25), reflecting significant growth across key metrics. 

  • Revenue Growth: AGEL’s revenue from operations increased by 30% year-over-year (YoY) to ₹3,376 crore in Q2 FY25, up from ₹2,589 crore in the same quarter of the previous year. 
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Capacity Expansion: The operational capacity grew by 34% YoY to 11,184 megawatts (MW), driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.  
  • Energy Sales: Energy sales increased by 20% YoY, totalling 14,128 million units in H1 FY25, attributed to the robust capacity additions and strong operational performance. 
  • Cash Profit: The company’s cash profit surged by 27% YoY to ₹2,640 crore, reflecting enhanced financial strength.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Debt Management: AGEL fully redeemed a USD 750 million Holdco bond, aligning with its commitment to systematic deleveraging and robust capital management. 

Recent Developments 

In November 2024, AGEL faced legal challenges when U.S. authorities indicted founder Gautam Adani and key executives on charges of bribery, alleging a $265 million scheme to secure power supply contracts in India. These allegations led to a substantial decline in AGEL’s stock value, erasing approximately $9.6 billion in market capitalization.  Following these developments, S&P Global Ratings revised its outlook on AGEL from ‘stable’ to ‘negative,’ citing concerns over the company’s ability to access funding and maintain investor confidence. As of December 24, 2024, AGEL’s stock closed at ₹1,031.05, reflecting a year-to-date decline of approximately 32.75%. The company’s market capitalization stands at ₹1.63 trillion. Key financial ratios include a Price-to-Earnings (P/E) ratio of 144.79 and a Price-to-Book (P/B) ratio of 9.39.  

AEGL Outlook and contribution to Industry 

AGEL remains on track to achieve its 2030 renewable energy capacity target of 50 GW, including at least 5 GW of energy storage. The company’s focus on sustainability, operational excellence, and governance practices positions it favourably for continued industry-leading growth.  

AGEL has set ambitious goals to significantly expand its renewable energy capacity. The company plans to invest approximately ₹1,500 billion (US$18 billion) to increase its wind and solar capacity at Khavda in Gujarat’s Kutch region from 2 GW to 30 GW by 2030. This expansion is part of AGEL’s broader target to achieve 45 GW of renewable energy capacity by 2030, contributing to India’s sustainable energy transition.  In line with its growth strategy, AGEL is embracing advanced technologies to enhance operational efficiency. The company is integrating Industry 4.0 solutions, such as N3uron’s technology, to optimize its renewable energy operations.  

AGEL plays a vital role in India’s renewable energy landscape. As of March 2019, the company managed approximately 5,290 MW of wind and solar power plants across 11 states in India, with an operational capacity of around 2,360 MW.  AGEL’s projects contribute significantly to India’s renewable energy targets, supporting the nation’s commitment to increasing the share of renewables in its energy mix. One of AGEL’s notable projects is the Khavda Renewable Energy Plant, which, upon completion, is expected to be the world’s largest renewable energy plant, covering an area five times the size of Paris.  This project exemplifies AGEL’s commitment to large-scale renewable energy development and its contribution to global clean energy initiatives. 

In summary, AGEL’s strategic investments and large-scale projects position it as a key contributor to India’s renewable energy sector, aligning with global sustainability goals and supporting the country’s energy transition efforts. 

Balance Sheet & Cash Flow Analysis 

Adani Green Energy Ltd (AGEL) is demonstrating significant growth, driven by substantial investments in renewable energy infrastructure. Over the years, the company has increased its equity capital modestly from ₹1,564 crores in 2022 to ₹1,584 crores in 2024, while reserves have grown impressively from ₹-71 crores in 2017 to ₹8,992 crores in 2024, reflecting improved profitability and financial health. The company’s borrowings have surged from ₹4,347 crores in 2017 to ₹67,430 crores in 2024, showcasing its reliance on debt to finance its aggressive expansion strategy. This increased leverage, while supporting growth, also presents potential risks if the returns on these investments fall short. 

AGEL’s fixed assets have grown substantially, from ₹4,341 crores in 2017 to ₹64,632 crores in 2024, indicating heavy investments in renewable energy projects. The company’s investments in Capital Work in Progress (CWIP) and other long-term assets signal its continued expansion. Despite negative cash flows from investing activities, which reflect heavy capital expenditures, AGEL has shown strong operational cash flow, growing from ₹28 crores in 2017 to ₹7,713 crores in 2024. This reflects the company’s increasing profitability and its ability to generate internal funding for growth. 

However, AGEL’s heavy reliance on debt financing and its large-scale investments could pose risks, especially if the returns on its projects do not materialize as expected. Effective debt management and successful project execution will be essential for maintaining financial stability. Overall, while AGEL’s growth prospects remain strong, careful monitoring of leverage and cash flow management will be crucial to sustaining its expansion and ensuring continued financial health.