Riding high on the back of turnaround in its FY23 balance sheet, shares of green energy company Suzlon Energy have zoomed around 80% in the last one month with bulls betting that strong order book and industry tailwinds could help the rally last longer.
Suzlon not only turned net-worth positive after a decade at Rs 1,100 crore, it has also reduced its net debt by 80% YoY to Rs 1,180 crore in FY23. The company returned to black after a long gap of 6 years with a profit of Rs 166.7 crore in the fiscal.
“Debt reduction has been significant. Profitability metrics have improved and the industry tailwinds are favourable with the focus on the renewables sector. The government target for 2030 of 500 GW non-fossil fuel-based capacity includes 100 GW wind capacity. This should be a significant tailwind for the overall industry,” Abhisekh Basumallick of Intelsense Capital told ETMarkets.
Analysts also noted that the company has recently seen a huge jump in order books. Suzlon’s portfolio ranges from 225kW to the newly-launched 3MW-S414 series, which contributes 51% of the current order book (1,542MW).
“It has a big order book which is set to increase with companies exploring and preparing for offshore wind power opportunities,” said Raghav Wadhwa of Samar Wealth.
Suzlon has become the first Indian wind energy company to reach 20 GW of worldwide wind energy installation and has a 33% cumulative wind energy market share in India.
"To tackle the strong demand, Suzlon is well equipped with a strong product suite and a much improved balance sheet now compared with FY20, due to the recent debt deleveraging exercises by the firm. The company has been through a few cycles of restructuring with its lenders due to the large debt pile up that had accumulated but the net debt has now significantly reduced due to refinancing and the successful rights issue," Emkay Global said.
Suzlon technical outlook
After a very large consolidation that had started in the stock in 2018, Suzlon is showing signs of a further breakout to higher levels.
“The recent positive results, coupled with the recent breakout it had above Rs 13.5 level is a good sign for the stock in the coming months. Although the stock has broken out, it is susceptible to large swings, one should keep a strict stop loss of Rs 10.5 on this counter and play it on the long side,” said Rahul Ghose, Founder & CEO, Hedged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
FAQs
Taken together, these technical indicators imply that SUZLON could potentially reach the Rs 47 to Rs 50 target in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 36 to safeguard investments in the event of an unexpected market reversal.
What is the future prediction of Suzlon Energy share? ›
Investors are showing interest in Suzlon due to its current profitability, with a projected Suzlon Share Price Target of ₹60.25 by 2025. Suzlon's target stock price is set at ₹60.25 for 2025, with a projected increase to ₹65.25 for further growth in the same year.
Is it the right time to buy Suzlon share? ›
ICICI Securities has upgraded Suzlon Energy Ltd and Inox Wind Ltd shares to 'Buy' rating and said the recent dip in the stocks is a good buying opportunity, as the two firms have deleveraged balance sheets and significantly enhanced their order books in recent quarters.
What is Suzlon's target? ›
By Hormaz Fatakia March 27, 2024, 2:35:05 PM IST (Updated) Shares of Suzlon may head back to their recent peak of ₹50 per share, according to Anand Rathi Securities, which initiated coverage on the stock with a price target of ₹49.
What will be SUZLON's share price in 2025? ›
Suzlon Share Price Target 2024, 2025, 2026,2027, 2028, 2029,2030, 2035
| Year | Share Price Target |
|---|
| 2024 | ₹44.15 |
| 2025 | ₹49.98 |
| 2026 | ₹59.03 |
| 2027 | ₹76.72 |
4 more rowsWhat is the DCF value of one SUZLON stock? Estimated DCF Value of one SUZLON stock is 19.14 INR. Compared to the current market price of 42.8 INR, the stock is Overvalued by 55%.
What is the new investment of Suzlon? ›
Suzlon will invest Rs 30,000 crore and Renaissance Solar has proposed Rs. 6,000 crore. Suzlon plans to start a 5,000 MW wind power unit, while Renaissance Solar aims to expand its capacity to 20,000 MW by 2030.
Which share is best to buy now? ›
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YES BANK SHARE PRICE TARGET TABLE FROM 2024, 2025 TO 2039
| Year | Yes Bank Target | YoY Change % |
|---|
| 2024 | ₹29.69 | 24.48% |
| 2025 | ₹42.84 | 44.29% |
| 2026 | ₹53.29 | 24.39% |
| 2027 | ₹58.30 | 9.4% |
13 more rows1 day ago
Shares of Suzlon Energy Ltd on Thursday recovered sharply from their early low levels. During initial deals, the stock slipped 4.94 per cent to hit an intraday low of Rs 41. It eventually moved 4.61 per cent higher to settle at Rs 45.12. At this price, the scrip has rebounded 10.05 per cent from its intraday low price.
Why Did Suzlon and Inox Wind Shares Drop? The drop in the share prices of Suzlon and Inox Wind resulted from news that the Ministry of New and Renewable Energy (MNRE) is planning to bring back “reverse auctions” for auctioning wind power capacity to energy companies.
What penny stocks to buy today? ›
Penny Stocks To Buy Today
| Company Name | LTP | % Change |
|---|
| DIL | 8.05 | 0.63 |
| Kanani Industries | 3.7 | 4.23 |
| Dynamic Cables Ltd | 575 | 3.07 |
| Hilton Metal Forging | 126 | 4.00 |
1 more row"Suzlon share price is looking positive on the chart pattern. Those who have Suzlon shares in their stock portfolio are advised to hold the energy scrip maintaining stop loss at Rs 45 apiece levels.
Which stock will boom in 2024? ›
Best Stocks to Invest in India 2024
| S.No. | Top 5 Stocks | Industry/Sector |
|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
1 more rowMay 6, 2024
Analysts believe that the share price of Suzlon Energy can reach Rs 48.50 to Rs 55.65 per share in 2024 (Suzlon Share Price Target 2024). This is because the company's power production capacity is expanding and the company is taking receipt of new projects in India and abroad.
What is the target price of idea share in 2025? ›
Vodafone Idea Share Price Target 2025 is between Rs 18 and Rs 17.
What is the target price of Suzlon Energy in 2040? ›
At the end of 2040, the use of wind turbines will increase more and more, and hopefully, the sales amount also will increase. As a result of that the net profit and share price of the company also increases. The 1st Price Target for the year 2040 is ₹470.25 and the 2nd Price Target is ₹480.12.
What is the target price of ITC in 2025? ›
According to analysts, ITC price target is 501.20 INR with a max estimate of 585.00 INR and a min estimate of 430.00 INR. Check if this forecast comes true in a year, meanwhile watch ITC LTD stock price chart and keep track of the current situation with ITC news and stock market news.
