The renewable energy sector is rapidly growing, with global investments reaching $303.5 billion in 2023. Renewable sources accounted for 29% of global electricity generation, with solar and wind leading the way. This sector is crucial for reducing carbon emissions and combating climate change, driven by technological advancements and policy support.
Price movement:-
With a market capitalization of Rs 84,746.78 crore, the shares of Suzlon Energy Ltd were trading at Rs 62.19 per share increasing around 1.19 percent as compared to the previous closing price of Rs 61.46 apiece.
Financial analysis:-
Examining Suzlon Energy’s financial performance, revenue increased by 50 percent from Rs 1,351 crore in Q1FY23 to Rs 2,022 crore in Q1FY25. During the same period, net profit magnified by 200 percent, from Rs 101 crore to Rs 302 crore.
Brokerage target and Rational:-
Geojit Financial Services, one of the well-known brokerages in India, gave a ‘Buy’ call on the green energy stock with a target price of Rs 73 apiece, indicating a potential upside of 18 percent from Friday’s price of Rs 62.19 per share.
In the FY24–26E period, Geojit Financial Services expects Suzlon’s revenue CAGR & ROE to surpass those of the industry peers. They also anticipate order inflows to be strong in this period, supported by strong government tendering and from commercial and industrial (C&I) customers.
Moreover, the brokerage expects a revenue CAGR of 53 percent to drive EPS growth of 66 percent CAGR, resulting in an ROE improvement of 18.2 percent in FY24A to 26.9 percent in FY26E.
Additionally, the company’s improved executions, cost optimization from better workforce management, and greater pass-through of commodity prices are likely to enable Wind turbine generators (WTG margin) improvement.
Order book & Capacity:-
The company has the largest ever order book of 3.8 GW since its inception. The company has an installed capacity of 446 GW as of June 2024 and aims to achieve 777 GW capacity by 2030.
Company profile:-
Suzlon Energy Limited is an Indian renewable energy solutions supplier. The company manufactures wind turbine generators and related components in various capacities. It operates in 17 countries including Asia, Australia, Europe, Africa, and the Americas.
Written by:- Abhishek Singh
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