A significant development has emerged in the renewable energy sector, highlighting strategic investment movements by HDFC Mutual Fund and Mirae Asset Mutual Fund. With HDFC Mutual Fund managing assets worth approximately ₹4.5 lakh crore and Mirae Asset Mutual Fund holding around ₹1.5 lakh crore, these prominent mutual fund players have made a notable acquisition of shares in a key wind energy company.
Market analysts are closely monitoring these investments, which could potentially signal broader trends in the renewable energy market. The recent share acquisitions by these well-established mutual funds may represent a pivotal moment for investors seeking exposure to innovative and environmentally conscious sectors.
Stock Price Movement
With a market capitalisation of Rs. 88,836 crores, the shares of Suzlon Energy Limited is treading at Rs. 65.08 per equity share, down by 1.57 percent from its previous day’s close price of Rs. 66.12.
What Happened
HDFC Mutual Fund and Mirae Mutual Fund acquired stakes in Suzlon Energy in November, marking new investments as neither fund held over 1% stake as of September. Suzlon’s September shareholding included 28 funds (4.14%), foreign portfolio investors (23%), and 50 lakh small shareholders (23.55%). The highlights evolve equity distribution in Suzlon’s ownership structure.
Q2 Financial Highlights
Suzlon Energy Limited’s revenue has increased from Rs. 1,421 crore in Q2 FY24 to Rs. 2,103 crore in Q2 FY25, which has grown by 47.99 percent. The net profit of Suzlon Energy Limited has also grown by 97.06 percent from Rs. 102 crore in Q2 FY24 to Rs. 201 crore in Q2 FY25.
Suzlon Energy Limited’s revenue and net profit have grown at a CAGR of 24.96 percent and 85.14 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 24.9 percent and 28.8 percent, respectively. The debt-to-equity ratio of the company is to be 0.06x, which shows the company is almost debt-free. Suzlon Energy Limited’s EPS is to be Rs. 0.71.
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Market Outlook
India’s renewable energy sector is poised for significant growth, with the government targeting 500 GW of non-fossil-based electricity by 2030. In 2023, 13.5 GW of renewable capacity was added, supported by an investment of Rs. 74,000 crores. Electricity demand is forecast to grow by 8% in 2024, driven by economic expansion and increasing adoption of electric technologies. The Interim Budget 2024-2025 allocated Rs. 8,500 crores for solar infrastructure and Rs. 17,490 crores for green hydrogen initiatives, propelling installed renewable capacity to 170 GW by March 2025.
Shareholding Pattern
As of the September 2024 shareholding pattern, Suzlon Limited is primarily held by the promotors at 13.25 percent, foreign institutional investors hold 23.72 percent, and the public with 54.02 percent.
Company Overview
Suzlon Energy Limited was founded in 1995 and headquartered in Pune. The company is a leading Indian multinational in renewable energy, specialising in wind energy solutions. The company manufactures wind turbine generators (WTGs) and components, with products like the S144, S133, and S120 models offering varying capacities and higher generation efficiency.
The company operates in 17 countries across multiple continents. Suzlon also provides services such as operations and maintenance, digitalisation, and multi-brand O&M services, positioning itself as a major player in the global wind energy market.
Written By Fazal Ul Vahab C H
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