A leading player in the wind energy sector has come into focus after Motilal Oswal projected a potential upside of 37 percent. The bullish outlook has sparked investor interest, positioning the stock as one to watch in the renewable energy space.
Price Movement
During Wednesday’s trading session, Suzlon Energy Ltd‘s share price hit an intraday high of Rs.53.76 apiece, rising 1.28 percent from its previous close of Rs.53.08 apiece. The share has since retreated and closed at Rs.51.23 per share, falling 3.5 percent.
Brokerage Recommendation
Motilal Oswal has initiated coverage on Suzlon Energy Ltd., describing it as a “bellwether” for India’s wind energy growth. The brokerage has issued a “buy” rating with a price target of Rs.70 per share, indicating a potential upside of 37 percent from Wednesday’s closing price. Motilal highlights that wind energy contributes nearly 20 percent to India’s renewable mix, compared to 39 percent in the US, 33 percent in China, 39 percent in Germany, and 42 percent in the UK, underlining the significant growth opportunity in the sector.
Business Overview
Suzlon Energy Ltd is a leading Indian multinational company specializing in renewable energy solutions, with a strong focus on wind and solar power. Founded in 1995 by Tulsi Tanti, the company is headquartered in Pune, India, and operates as a publicly listed entity. Suzlon’s core business revolves around manufacturing wind turbines and providing end-to-end renewable energy solutions, including wind farm development, installation, and maintenance.
Capacity Enhancement
Suzlon Energy Ltd has a global installed wind energy capacity of 20.9 GW and an annual manufacturing capacity of approximately 4,500 MW in India. With a 31 percent cumulative market share, Suzlon remains a key player in India’s wind energy sector, contributing significantly to the country’s renewable energy landscape.
Order Book
Suzlon Energy Ltd has demonstrated its capability to manage multiple technologies under one roof, with a combined capacity of 1,905 MW in wind, 148 MW in solar, and 3,016 MW in assets under management. The company also oversees 963 MW of Balance of Plant (BOP) and boasts an impressive order book of 5,521 MW as of January 2025, reflecting a significant growth of 141 percent from 2,290 MW in January 2024.
Management Guidance
The company anticipates that consolidated contribution margins will stabilize at approximately 20 percent, factoring in steel prices and project execution. Operations and Maintenance (O&M) margins are expected to remain around 40 percent, although quarterly fluctuations may arise due to one-off items.
Financial Performance
According to its recent financial updates, Suzlon Energy Ltd reported consolidated revenue of Rs.2,975 crores in Q3 FY25, marking a 91 percent increase from Rs.1,560 crores in Q3 FY24. Additionally, the company saw a surge in net profit to Rs.388 crores, rising 91 percent from Rs.203 crores in the same period last year.
Important Accounting Ratios
The company has a Return on Capital Employed (ROCE) of 20.69 percent and a Return on Equity (ROE) of 21.35 percent. Its Price-to-Earnings (P/E) ratio stands at 62.6, higher than the industry average of 45.01. Furthermore, the company maintains a current ratio of 1.8, and a debt-to-equity ratio of 0.06.
Written by – Siddesh S Raskar
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