Suzlon Energy share price: Domestic brokerage firm JM Financial has recently cut its target price on Suzlon Energy post its visit to the company’s nacelle and hub assembly plant at Daman, even as it saw initiatives to enhance capabilities to handle more volume and higher-rating wind turbine generators (WTGs).
The brokerage, explaining the rationale for its price cut, cited the execution challenges constraining growth beyond FY27 and roll forwarding its EPS from December 2026 to March 2027. However, JM Financial has maintained its buy rating on the stock on the back of a strong order book.
Shares of Suzlon Energy Ltd rose more than 3.45 per cent to Rs 56.88 during the trading session on Wednesday, commanding a total market capitalization close to Rs 77,000 crore. The stock had settled at Rs 54.98 on Tuesday. Shares of Suzlon Energy have crashed nearly 35 per cent from its 52-week high at Rs 86.04 hit in September 2024.
With its highest-ever, and growing, order book of 5.9GW, Suzlon remains upbeat about revival of the industry and resolution of execution challenges in the next 2-3 quarters. The company shared that the feedback on performance of the 3MW wind turbine generator (WTG) has been very encouraging, said JM Financial.
During our visit, we saw the area of the shop floor is under expansion by converting the existing warehouse into the new hub assembly shop. The capacities of EOT cranes in both shops and loading areas have been increased. With this, the plant can manufacture 4 nacelles/day (+1 no.), it said.
The manufacturing capacity of the company will increase from 3.15GW to 4.5GW, taking together capacities at both Daman and Pondicherry plants. We maintain our 'buy' rating on the stock with a target price of Rs 71 (from Rs 80 earlier), moderating P/E multiple from 40 times December 2026 to 35 times March 2027, JM added.
In the December 2024 quarter, Suzlon Energy reported a consolidated net profit of Rs 387 crore, marking an impressive increase of 91 per cent on a year-on-year (YoY) basis Its company's revenue from operations also saw a strong rise of more than 90 per cent YoY to Rs 2,969 crore.
Suzlon Energy's Ebitda more than doubled to Rs 500 crore for the reported quarter, while its Ebitda margin stood at 16.8 per cent in Q3FY25. It reported record deliveries during the quarter at 447 MW, which is a jump of 163 per cent YoY
Other brokerage firms also continue to remain positive on the stock. Morgan Stanley maintained its 'overweight' on Suzlon with a target price of Rs 71 per share, while Nuvama Institutional Equities upgraded Suzlon to 'buy' from 'hold' with a target price of Rs 60 on the stock.
Setting up national manufacturing mission to promote "Make in India" - the mission will provide policy support, execution roadmaps, governance, and monitoring framework to central ministries, said YES Securities post the Union Budget 2025 citing Suzlon to be one of the beneficiaries of the move.
Adding to the same, Anand Rathi Research in its report post the union budget said that the move shall encourage domestic production, reducing reliance on imports and fostering supply-chain resilience and Suzlon is likely to one of the companies impacted from the move.