Suzlon Energy Share Price Down 33% from Its All-Time High: Buy the Dip or Stay Away?

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The Suzlon Energy share has declined 33.66% from its 52-week high of ₹86.04, touched on September 12 last year. Shares of Suzlon Energy Ltd slipped 9.61% for the previous month to close at ₹54.17. As per Q1 FY26 results, renewable energy solutions have grown by 7.28% year-on-year (YoY), with consolidated net profit rising to ₹324.32 crore from ₹302.29 crore in the same quarter last year. The revenue is recorded at ₹3,117 crore, resulting in a high 54.61% YoY growth from ₹2,016 crore.

Key Aspects of the Suzlon Energy Share 

• The recent quarterly earnings failed to show growth and missed market expectations, resulting in a decline in profit growth and negatively impacting the company’s execution capabilities.
• The high valuation of Suzlon Energy Ltd. has demotivated investors, who are cautious about investing given the company’s valuation. However, the company has reported healthy long-term growth prospects for the near future, driven by various factors.
• The company’s valuation is approximately ₹74,243 crore; the P/E ratio is 34.50%, the P/B ratio is 11.85%, and the ROE is 33.93%.
• Suzlon Energy consolidated revenue has risen to ₹3,117 crore. In comparison, EBIDTA has increased to ₹599 crore, highlighting 62% YoY growth driven by strong deliveries, with margins expanding by 80 basis points YoY to 19.2%.  

Suzlon Energy Ltd: An Overview

Suzlon Energy Ltd. is an Indian multinational wind turbine manufacturer, with its headquarters in Pune.  The Suzlon Group comprises Suzlon Energy Ltd. and its various subsidiaries. The concept of sustainable development drives the Group’s vision for growth. Suzlon Group aims to make renewable energy both cost-effective and straightforward for customers. In fact, Suzlon enables the ‘Concept to Commissioning’ model in wind energy, enabling it to meet the breadth and depth of customer requirements across the renewable energy value chain.   

Suzlon Energy Ltd. manufactures wind turbine generators (WTGs) and components, including blades, nacelles, towers, and foundations. The company’s customers include Independent Power Producers (IPPs), large corporates, PSUs/government, and retail. customers. The company has 4 R&D units, along with its subsidiaries, and operates in 17 countries across six continents.

What is the Future Prediction about Suzlon Energy Shares?

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The investors may make a reliable decision after analysing future predictions for Suzlon Energy shares, which helps them buy or sell the shares as per the analyst’s prediction and by assessing the company’s past performance. Here is a key list of future predictions and analysts’ forecasts for buying or selling the Suzlon Energy share:

• According to the exchange filing, retail investors now own a 25.12% stake in Suzlon Energy, a rise from 24.49% at the end of the December quarter.
• According to Motilal Oswal Financial Services, the target price is ₹70 per share. In its report, the domestic brokerage noted that the capital goods sector has declined.
• The Head of Research at Lakshmishree Investment and Securities stated that the Suzlon share price is showing clear signs of strength as it forms a solid structural base around the ₹48-50 zone.

Pros of Investing in Suzlon Energy Shares

• The company may have undergone a major economic restructuring and has a strong financial performance, with the expectation of being debt-free by FY25, having achieved strong quarterly results in 2025.
• The revenue for the year was up 67% YoY at ₹108.5 bn. EBITDA was up 81% YoY at ₹18.6 bn. The total order book at the end of FY25 was a record 5.6 GW. The company ended FY25 with a stable cash position of ₹19.5 bn. 
• As the country advances towards the 100 GW target by 2030, the company is firmly in the dominant position in the national wind energy ecosystem.
• Portfolio diversification is the most effective strategy for managing individual stock volatility. Suzlon Energy offers diversification for those willing to invest in its shares.

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Cons of Investing in the Suzlon Energy Shares

• There have been concerns about investors or order cancellations, casting doubt on the company’s revenue visibility. This poses a significant risk for investors considering Suzlon Energy shares.
• Recently, Suzlon Energy’s CFO resigned, leading to uncertainty among investors. The CFO has played a crucial role in debt restructuring and other significant matters that have raised questions about the continuity of financial management.
• Sudden changes in the wind turbine and delays in the deliveries of wind turbines, and actual installations may be running at a much lower level, raising questions about execution strength.
• The Suzlon share price has fallen by approximately 18.25%, highlighting sustained investor concern and mixed execution at Suzlon Energy. Investors must review all risks and concerns before investing in Suzlon Energy shares.

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Conclusion

There are several reasons why the share price of Suzlon Energy Ltd. has been falling, including the execution of poor projects, which have led to mixed quarterly earnings, and, at times, Suzlon Energy Ltd. has failed to meet investor expectations. Here are some long-term predictions from analysts to help investors, as Suzlon Energy Ltd. has an average share price target of ₹ 70.60. The consensus estimate represents a 30.55% upside from the last price of $ 54.08. View of 11 reports from 5 analysts offering long-term price targets for Suzlon Energy Ltd. The revenue for the year was up 67% YoY at ₹108.5 bn. EBITDA was up 81% YoY at ₹18.6 bn. The total order book at the end of FY25 was a record 5.6 GW. The company ended FY25 with a stable cash position of ₹19.5 bn. As per Motilal Oswal Financial Services, it has been observed that the target price is ₹70 per share. In their report, the domestic brokerage pointed out that the capital goods sector has decreased.

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FAQs

What went wrong with Suzlon Energy?

Ans. There are several reasons why the share price of Suzlon Energy Ltd. has been falling, including the execution of poor projects, which have led to mixed quarterly earnings, and, at times, Suzlon Energy Ltd. has missed investor expectations. Recently, it has been reported that Group CFO Himanshu Mody has resigned, raising concerns about high valuations.

What is the performance analysis of Suzlon Energy?

Ans. Total Revenue of Suzlon Energy Ltd. for FY2019, FY2020, FY2021, FY2022, FY2023, FY2023, and FY2024 are ₹5,143.98 cr., ₹3,000.45cr., ₹4,187.33cr., ₹6,687.09cr., ₹8,710.76cr., and ₹6,575.72cr. According to Suzlon Energy Ltd.’s Income Statement, over the last five years, revenue has grown at a yearly rate of 29.65%, compared to the industry average of 23.6%.

What is the right time to buy Suzlon Energy shares?

Ans. According to analysts, Suzlon Energy Ltd.’s share price is determined by market factors. The share price has decreased due to internal company factors, financing partnerships, growth in the wind energy sector, and is highly volatile. Therefore, investors must review all factors before investing in Suzlon Energy Ltd.

What are the advantages of investing in the Suzlon Energy Shares?

Ans. As the country advances towards the 100 GW target by 2030, the company is firmly in the dominant position in the national wind energy ecosystem. The revenue for the year was up 67% YoY at ₹108.5 bn. EBITDA was up 81% YoY at ₹18.6 bn. The total order book at the end of FY25 was a record 5.6 GW.  

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