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Suzlon Energy shares have corrected 37% from their 2024 peak of ₹86.
Investec believes that Suzlon, the wind equipment supplier and operations & maintenance service provider, is well positioned to capitalise on the resurgence in the wind energy sector.
Suzlon has evolved into a net-cash entity with strong Return on Equity (RoE) and Return on Capital Employed (RoCE), aided by a rapidly expanding order book, a robust pipeline of bids and a fully optimised supply chain, the Investec note said.
The company’s order book currently as an all-time high of 5.5 GW, which the management plans to execute over the next 18 months. In an interaction with CNBC-TV18 on January 29 this year, Suzlon Group CFO Himanshu Mody had said that the company currently has a 4.5 GW manufacturing capacity annually and that he anticipates a capex between ₹300 crore to ₹400 crore every year for the next two to three years.
Investec expects Suzlon Energy’s revenue and net profit to grow at a Compounded Annual Growth Rate (CAGR) of 55% and 66% respectively, over financial year 2024 – 2027. It also expects the company’s RoE to expand to 32% in financial year 2027 from 28.5% at the end of financial year 2024.
Out of the seven analysts that now have coverage on Suzlon Energy, five of them have a “buy” rating, while the other two have a “sell”.
At the end of the December quarter, retail shareholders, or those with an authorised share capital of up to ₹2 lakh, stood at 54.1 lakh, which is up by nearly 5 lakh from the September quarter figure of 49.38 lakh.
Shares of Suzlon Energy ended 1.3% higher on Thursday at ₹54.84. The stock has already corrected 16% so far in the first two months of 2025.
