Suzlon Energy shares in a downtrend since Sept 2024, here are fresh price targets

Shares of Suzlon Energy Ltd have slipped 34% from their 52-week high in seven months. The multibagger stock hit a 52-week high of Rs 86.04 on September 12, 2024. Since then, it has been in a downtrend. Foreign investors trimmed their stake by 0.85% to 22.9% in the December 2024 quarter compared to 23.7% stake in the September 2024 quarter. That might have affected the stock's direction during the period.

On the other hand, domestic institutional investors (DIIs) raised their stake to 9.3% in the December 2024 quarter compared with 9% in the preceding quarter.

The fall in the stock from its 52-week high comes despite the firm reporting a stellar set of earnings for both September and December 2024 quarter. The firm reported a 91% rise in Q3 net profit and logged a 96% increase in net profit in Q3 of the current fiscal.

The multibagger stock has gained 55.41% in the last one year, and risen 662% in two years. The stock climbed 668% in three years.

In the current session, Suzlon stock was trading 0.07% higher to Rs 57.66 on BSE. Market cap of the multibagger stock climbed to Rs 78,696 crore in the current session.

The green energy stock saw a turnover of Rs 15.57 crore as 27.10 lakh shares changed hands on BSE today.

Suzlon Energy shares have a beta of 1.2, indicating very high volatility in a year.

Suzlon Energy stock is trading lower than the 5 day, 100 day, 150 day, 200 day and higher than 10 day, 20 day, 30 day and 50 day moving averages.

Recently, MOFSL initiated coverage on the stock with a target price of Rs 70 apiece.

MOFSL said competitors were investing in the Indian wind equipment market. This includes Envision Energy India's 1GW partnership with Juniper Green Energy; SANY India's 1.6GW contracts with JSW Group (1.3GW); and Sembcorp (0.3GW). Western players like GE, Gamesa and Vestas, despite their EPC capabilities, are avoiding the EPC segment due to low margins, while Chinese manufacturers are inactive in India's EPC market.

"This creates a favorable environment for domestic manufacturers, particularly Suzlon Energy, to capitalise on the growing demand in the Indian wind energy sector due to its presence across the value chain. Assuming 8GW wind installation in India (in FY27), we estimate Suzlon's order book execution to be 3.2GW in FY27," MOFSL said.

Geojit Financial has price target of Rs 71 on the stock.

"We forecast margin expansion of 70bps as higher EBITDA contributions and improving profitability of the WTG segment due to better project mix can drive consolidated EBITDA margins. Suzlon’s PAT is expected to grow at a 30% CAGR in the FY25-27E period. Therefore, we value the stock at a 40X PE multiple on FY27 EPS to arrive at a target price of Rs.71, said Geojit.

However, JM Financial has reduced its price target on the Suzlon Energy stock from Rs 80 to Rs 71.

"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 TP of INR 71 (from INR 80 earlier), moderating P/E multiple from 40xDec’26 to 35xMar’27 given execution challenges constraining growth beyond FY27 and roll forwarding our EPS from Dec’26 to Mar’27," said JM Financial.