Suzlon Energy Ltd, India’s leading wind turbine manufacturer, is experiencing a remarkable resurgence in its stock performance, driven by robust financial results, strategic expansions, and favorable policy developments.
Stock Performance & Market Capitalization
As of May 2025, Suzlon’s stock has gained approximately 575% over the past three years and 55% in the last year. In March 2025 alone, the stock surged nearly 17%, bouncing back from a five-month downward trend . Despite recent volatility, the stock remains 33.3% below its 52-week high of ₹86.04, recorded in September 2024 .(mint)
Financial Highlights
Suzlon’s Q3 FY25 results showcased a 91% year-on-year increase in consolidated net profit, reaching ₹388 crore, up from ₹203 crore in Q3 FY24. Revenue from operations rose by 9% during the same quarter, indicating steady business momentum .(mint)
Key Factors Fueling the Optimism:
Strong Order Book: Suzlon boasts its highest-ever order book, standing at a healthy 5.5 GW as of Q3 FY25. This provides strong revenue visibility for the coming years. Notably, a significant portion of these orders comes from the Commercial & Industrial (C&I) segment and Public Sector Undertakings (PSUs), indicating a diversified and robust demand.
Government Policy Support: The Indian government’s push for renewable energy, aiming for 500 GW of non-fossil fuel capacity by 2030, provides a conducive environment for wind energy companies like Suzlon. Recent policy moves, such as the draft notification for the Revised List of Models & Manufacturers (RLMM) mandating local sourcing of key wind turbine components, further benefit domestic players like Suzlon with their established local supply chain.
Analyst Ratings & Price Targets
Brokerages have expressed optimism about Suzlon’s future prospects:
Geojit reiterates its ‘Buy’ recommendation with a target price of ₹71, anticipating robust order inflows .(mint)
Strategic Developments
Suzlon has expanded its order book to 5.9GW and enhanced its manufacturing capabilities, including increasing production capacity from 3.15GW to 4.5GW . The company has also secured a significant order of 204.75 MW from Jindal Green Wind 1 Pvt. Ltd., a subsidiary of Jindal Renewables . (Samco, SME Street)
Market Sentiment and Analyst Views:
The recent performance and future prospects have garnered positive sentiment from the market and analysts. Several brokerage houses have initiated or reiterated “Buy” ratings on the stock, with target prices indicating potential upside from current levels. Factors cited include the company’s leadership in the wind energy sector, strong order book, improving execution capabilities, and favorable industry outlook.
Challenges and Watchouts:
Despite the positive momentum, investors should remain mindful of potential challenges:
Execution Risks: While the order book is strong, timely and efficient project execution remains crucial for sustained growth and profitability.
Competitive Landscape: The renewable energy sector is competitive, with both domestic and international players vying for market share.
Raw Material Price Volatility: Fluctuations in raw material prices could impact manufacturing costs and profitability.
Policy Changes: While current policies are supportive, any adverse changes in government regulations could affect the sector’s growth.
Conclusion
Suzlon Energy’s impressive stock performance, coupled with strong financial results and strategic developments, underscores its potential for sustained growth in the renewable energy sector. Investors may consider monitoring the company’s progress and industry developments when evaluating investment opportunities.
@EconomicTimes
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
