Suzlon Share Price Target

Suzlon Energy Ltd, a trailblazer in the renewable energy sector, has become a focal point for investors and market analysts. The company’s Suzlon share price target has emerged as a hot topic in financial circles, driven by its impressive financial recovery and the surging global demand for sustainable energy solutions. 

Suzlon Share Price Target

1. About the Company

Suzlon Energy stands as a beacon in India’s renewable energy landscape, with a rich history spanning over 28 years. As a vertically integrated wind turbine manufacturer and operations & maintenance (O&M) service provider, Suzlon has established itself as a formidable player in the global wind energy sector.Key highlights of Suzlon Energy:

  • Founded: Over 28 years ago
  • Global Installed Capacity: 20.7 GW
  • Indian Installed Capacity: 14.7 GW
  • Market Share in India: 32% cumulative
  • Expertise: Entire wind energy value chain from resource mapping to after-sales services

Suzlon’s competitive edge stems from several factors:

  1. Extensive experience in wind energy
  2. Strong customer relationships (1,900+ clients)
  3. Vertical integration with in-house R&D and manufacturing
  4. Superior product offerings with high energy yields
  5. Cost-competitive manufacturing and execution capabilities

The company’s commitment to renewable energy aligns perfectly with India’s ambitious goals of achieving 500 GW of renewable energy capacity by 2030 and becoming a net-zero emitter by 2070. This positions Suzlon at the forefront of India’s green energy revolution.

Suzlon website

Suzlon Share Price Target

2. Products

Suzlon offers a comprehensive range of wind turbine generators (WTGs) designed to maximize energy production across various wind regimes. Let’s dive deep into their flagship product:

S144-140/160 (3.0 MW – 3.15MW)

This is Suzlon’s latest and most advanced wind turbine model, representing a significant technological leap in the industry.Key Specifications:

  • Rotor Diameter: 144 meters
  • Hub Heights: 140m and 160m options
  • Rated Capacity: 3.0 MW to 3.15 MW (variable)
  • Annual Energy Production (AEP): 43-49% higher than previous models

Notable Features:

  1. Enhanced Energy Yield: The large rotor diameter captures more wind energy, while advanced aerodynamics optimize performance across various wind conditions.
  2. Versatility: Suitable for low to medium wind sites, expanding the potential for wind farm locations and making previously unviable sites economically attractive.
  3. Grid Compatibility: Advanced control systems ensure smooth grid integration, reducing potential issues with power quality and grid stability.
  4. Reduced Downtime: Innovative design and predictive maintenance features minimize operational interruptions, increasing overall turbine availability.
  5. RLMM Listing: The S144 has received the Revised List of Models and Manufacturers (RLMM) listing from the Ministry of New and Renewable Energy (MNRE), validating its compliance with industry standards.

Suzlon’s product strategy focuses on continuous innovation to reduce the Levelized Cost of Energy (LCOE), making wind power increasingly competitive with conventional energy sources. This approach not only benefits their customers but also contributes to the broader goal of making renewable energy more accessible and affordable.

3. Results and Performance

Suzlon Energy has demonstrated impressive financial growth in recent years, showcasing its resilience and strategic positioning in the renewable energy sector. Here’s a detailed look at key financial metrics:

Metric (₹ in Crores)FY22AFY23AFY24AFY25EFY26E
Revenue6,5825,9716,52910,78815,329
EBITDA8898321,0291,6652,259
EBITDA Margin (%)13.513.915.815.414.7
PAT (Adjusted)(283)1287141,4351,968
EPS (₹)(0.3)0.10.51.11.4
ROE (%)8.011.718.226.826.9

Key Observations:

  • Strong revenue growth projected: 65% in FY25E and 42% in FY26E
  • Significant improvement in profitability, with PAT expected to grow at a 66% CAGR from FY24 to FY26
  • Consistent EBITDA margin expansion, reaching 15.8% in FY24
  • Impressive ROE improvement, expected to reach 26.9% by FY26

This financial performance underscores Suzlon’s successful transition from a debt-laden company to a profitable, growth-oriented enterprise. The projected figures indicate a robust outlook, driven by increasing demand for renewable energy solutions and Suzlon’s strong market position.

4. 52-Week Stock Summary and Past 12-Month Performance

52-Week Stock Summary:

  • High: ₹61
  • Low: ₹17
  • Current Price (as of July 24, 2024): ₹61

Past 12-Month Stock Performance (Monthly OHLC):

DateOpenHighLowCloseChange %
Dec-2463.2170.1861.1162.24-1.17%
Nov-2467.3069.8553.4562.98-5.93%
Oct-2480.3081.5366.0066.95-16.36%
Sep-2475.8486.0472.5080.055.55%
Aug-2469.9384.2965.6075.849.31%
Jul-2453.2070.8952.4369.3831.25%
Jun-2450.0055.7045.1552.8610.93%
May-2441.6049.0037.9047.6514.54%
Apr-2439.9544.6038.4041.602.97%
Mar-2445.6046.0035.5040.40-10.72%
Feb-2447.3050.6041.0545.25-1.52%
Jan-2438.5045.9537.1045.9520.29%

The stock has shown a strong upward trend over the past 12 months, reflecting growing investor confidence in Suzlon’s business model and the overall positive outlook for the renewable energy sector.

5. Share Price Targets

Based on Suzlon’s strong financial projections and positive industry outlook, here are the estimated share price targets:

YearTarget Price (₹)Potential Upside
Suzlon Share Price Target 20247320%
Suzlon Share Price Target 20258844%
Suzlon Share Price Target 202610572%
Suzlon Share Price Target 2027126107%
Suzlon Share Price Target 2028151148%
Suzlon Share Price Target 2029181197%
Suzlon Share Price Target 2030217256%
Suzlon Share Price Target 2035435613%
Suzlon Share Price Target 20408701326%

Reasons for expected upside:

  1. Robust order book and strong execution capabilities
  2. Expanding wind energy market in India and globally
  3. Technological advancements leading to higher efficiency and lower LCOE
  4. Government push for renewable energy and favorable policies
  5. Improved financial health and deleveraged balance sheet
  6. Potential for export opportunities as global demand for wind turbines increases
  7. Synergies from vertical integration, enhancing profitability
  8. Growing focus on ESG investments, benefiting renewable energy companies

6. Key Management Personnel

  • Mr. Tulsi Tanti: Founder and Chairman
  • Mr. Girish Tanti: Non-Executive Director
  • Mr. Vinod R. Tanti: Whole Time Director and Chief Operating Officer
  • Mr. Himanshu Mody: Chief Financial Officer
  • Mr. Ashwani Kumar: Chief Executive Officer

This experienced leadership team brings a wealth of industry knowledge and strategic vision to Suzlon, positioning the company for continued growth and innovation in the renewable energy sector.

7. Management Commentary

“Management is witnessing a strong upcycle in the Indian wind energy sector, driven by the government’s ambitious renewable energy targets and increasing demand from commercial and industrial customers.

Suzlon is well-positioned to capitalize on this growth with our technologically advanced products, strong execution capabilities, and pan-India presence. We remain committed to reducing the cost of energy and making wind power a cornerstone of India’s clean energy future.

Our focus on innovation, cost optimization, and operational excellence has enabled us to navigate past challenges and emerge as a leaner, more efficient organization. The strong order book and improving financial metrics are testaments to the success of our turnaround strategy.

Looking ahead, we see immense opportunities not just in India but also in emerging markets globally. Suzlon is poised to play a pivotal role in the global transition to sustainable energy sources.

8. Dividend History

Suzlon Energy has not paid dividends in recent years as it focused on strengthening its balance sheet and investing in growth. However, as the company’s financial position improves, dividend payments may be considered in the future.

YearDividend Per Share (₹)
FY240
FY230
FY220
FY210
FY200

9. Corporate Action History

DateAction
July 2023Rights Issue of ₹2,000 crores successfully completed
April 2022Restructuring of FCCBs and term debt
March 2020Debt restructuring completed, reducing debt significantly
July 2019Rights Issue of ₹1,200 crores

These corporate actions reflect Suzlon’s strategic efforts to strengthen its financial position and create a solid foundation for future growth. The successful completion of rights issues and debt restructuring has significantly improved the company’s balance sheet, positioning it for sustainable long-term growth.

10. Key Conference Points

  • Focus on increasing market share in the growing Indian wind energy market
  • Emphasis on technological innovation to reduce LCOE
  • Expansion of O&M services to improve recurring revenue streams
  • Exploring export opportunities in emerging markets
  • Commitment to ESG principles and sustainable manufacturing practices
  • Strategies to capitalize on the government’s push for renewable energy
  • Plans for capacity expansion and product diversification
  • Initiatives to improve operational efficiency and reduce costs

11. Top 10 Shareholders

ShareholderStake (%)
Promoter and Promoter Group13.3
Life Insurance Corporation of India5.7
Oman India Joint Investment Fund4.2
Vanguard Group2.1
Government Pension Fund Global1.8
HDFC Mutual Fund1.6
Dimensional Fund Advisors1.4
BlackRock1.2
Norges Bank1.1
State Street Corporation0.9

The diverse shareholder base, including prominent institutional investors, reflects confidence in Suzlon’s business model and growth prospects.

12. Peers

CompanyMarket Cap (₹ Cr)Revenue (₹ Cr)EBITDA Margin (%)P/E Ratio
Suzlon Energy82,7176,52915.8125.3
Inox Wind7,8501,37812.578.2
Sterling & Wilson6,2005,9604.292.6
Siemens GamesaN/A (Delisted)8,2057.8N/A
Vestas WindN/A (Not listed)14,48610.2N/A

Suzlon stands out among its peers with a higher EBITDA margin and market capitalization, indicating its strong market position and operational efficiency.

13. FAQs

  1. Q: What is Suzlon’s market share in India?
    A: Suzlon holds a 32% cumulative market share in the Indian wind energy sector, making it a market leader in the country.
  2. Q: How much installed capacity does Suzlon have globally?
    A: Suzlon has an installed capacity of 20.7 GW worldwide, with 14.7 GW in India alone, demonstrating its significant presence in both domestic and international markets.
  3. Q: What is Suzlon’s latest wind turbine model?
    A: The S144-140/160 series, with capacities ranging from 3.0 MW to 3.15 MW, is Suzlon’s latest and most advanced wind turbine model.
  4. Q: Has Suzlon resolved its past debt issues?
    A: Yes, Suzlon has significantly deleveraged its balance sheet through debt restructuring and equity infusions, improving its financial health considerably.
  5. Q: Does Suzlon export its wind turbines?
    A: While primarily focused on the Indian market, Suzlon is exploring export opportunities in emerging markets, leveraging its manufacturing capabilities and technological expertise.
  6. Q: What is the expected growth rate for Suzlon’s revenues?
    A: Analysts project a 53% CAGR in revenues from FY24 to FY26, indicating strong growth prospects for the company.
  7. Q: How does Suzlon’s technology compare to global competitors?
    A: Suzlon’s latest turbines offer competitive efficiency and energy yields, on par with global standards, particularly its S144 series which provides 43-49% higher annual energy production compared to previous models.
  8. Q: What are the key growth drivers for Suzlon?
    A: India’s renewable energy targets, increasing demand from commercial and industrial customers, potential export opportunities, and the company’s strong order book are key growth drivers.
  9. Q: Does Suzlon offer operations and maintenance services?
    A: Yes, Suzlon provides O&M services for its installed wind turbines, which is a high-margin business segment contributing significantly to its recurring revenue.
  10. Q: What is Suzlon’s strategy for reducing the cost of wind energy?
    A: Suzlon focuses on technological innovation, improved manufacturing processes, and economies of scale to reduce the Levelized Cost of Energy (LCOE), making wind power more competitive with conventional energy sources.

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