The shares of one of the leading global renewable energy solution providers have surged by 330% over the past 12 months. This company’s market share in wind generator manufacturing has risen from 22% to 27%. It is classified as a large-cap stock.
Suzlon Energy Ltd., an end-to-end wind power solutions supplier in India, manufactures wind turbine generators, power generation equipment, and related equipment., Suzlon is a market leader with 111+ wind farms and an installed capacity of over 14,490 MW.
The company is a renewable energy solutions provider and is in the business of manufacturing, project execution, and operation and maintenance of wind turbine generators, and sale of related components.
Over the past two decades, Suzlon has installed over ~20.5 GW of wind energy in 17 countries across six continents
Over the past three years, it has reduced its debt from Rs 12,000 crore in FY20 to nil in FY24 through various debt-to-equity conversions.
The company has recently become net cash positive with a cash reserve of Rs 11bn as of Mar’24, after an equity raises worth Rs 2,000 crore in Q2FY24 for debt reduction.
Suzlon Energy Ltd., the wind turbine generator manufacturer, has increased its market share to 27% in the financial year 2024 from 22% in financial year 2023.
The Suzlon Group CFO further added that from a product perspective, Suzlon has a clear cut USP.Suzlon has a competitive edge of the only turbine that is designed specifically for Indian conditions.
The company’s Product Profile includes S144 Wind Turbine Generator and S133 Wind Turbine Generator and S120 Wind Turbine Generator and Classic Fleet.Company has phased out the manufacturing of its older WTG models – S111, S97, S88, S82, S66, and S52.
Suzlon recently secured its first order for the fiscal year 2025, totaling 402 MW, from Juniper Green Energy.The company’s revenue increased by 9.5% year-over-year, from Rs 5,971 crore in FY 21-22 to Rs 6,529 crore in FY 22-23. However, its net profit declined by 77%, from Rs 2,887 crore to Rs 660 crore.
As of FY24, Suzlon holds its largest ever order book of 3.3 GW and has a net cash position of Rs 1,148 crore as of March 31, 2024. During the same period, the company launched the S144 – 3.x MW series.
Himanshu Mody, Chief Financial Officer of Suzlon Group, emphasized the company’s commitment to maintaining a cost-conscious approach and prioritizing the timely execution of its order book. He also highlighted Suzlon’s wide-ranging digitization initiatives aimed at unlocking value across its businesses, particularly in the service sector.
In the latest shareholding pattern, the company’s promoter holds a 13.28% stake, domestic institutional investors (DII) hold a 6.30% stake, and foreign institutional investors (FII) hold a 19.57% stake.
Suzlon Energy Ltd shares have gained 13% over the last six months and 330% over the last 12 months.
Suzlon’s client base includes prominent companies such as ACC, Adani Renewables, Aditya Birla Group, Bajaj, GAIL, Hero, ITC, ONGC, Reliance, SBI, Tata, TVS, and Vedanta.
Based on the company’s strong outlook, ICICI Securities has revised its target price to Rs 54 per share, citing robust order inflow and project execution growth.
The brokerage revised its FY26 estimates for Suzlon Energy following a strong order inflow of 3.5 GW in Q4 FY24, leading to an order backlog of 3.3 GW. It adjusted the FY26 EBITDA estimate by 5% to Rs 2,750 crore and the profit estimate by 11% to Rs 2,100 crore.
On Tuesday, Suzlon’s shares closed at Rs 44 per share, representing a 2.65% decrease from the previous closing price. The company’s market value now stands at Rs 59,372 crore.
Written by Omkar Chitnis
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