Suzlon Energy Ltd., a key player in India’s renewable energy market, has seen its share price drop about 18% over the last six months. This decline has led investors to wonder about the company’s recovery potential.
Despite the recent dip, strong financial performance and a healthy order book suggest that Suzlon may be able to withstand market ups and downs.
Recent Stock Performance and Market Sentiment
Recently, Suzlon’s stock has faced challenges, closing at around ₹58.30 in late April 2025. This is down from its previous highs. Although the stock is lower than its 52-week high of ₹86.04, it is still above the low of ₹37.90210.
Over the past year, Suzlon has delivered good returns of about 38% and has seen impressive multibagger returns of over 1,700% in the last five years. Technical analysts see possible signs of recovery, though some caution is still advised.
Financial Health: Strong Growth Reported
Suzlon’s financial results show significant growth. In the third quarter of the financial year 2025 (Q3 FY25), the company posted a consolidated net profit of ₹3.88 billion (about $44.7 million), marking a sharp 91% increase from the previous year. Revenue also jumped by 91% from last year, reaching ₹29.69 billion (about $343 million).
This increase was mainly driven by a 132% rise in sales of wind turbine generators and record quarterly deliveries of 447 MW, which is a 163% increase from last year.
The positive trend continued in the first nine months of FY25, with revenue up 64% year-over-year to ₹70.78 billion and net profit increasing 120% to ₹8.91 billion. Suzlon credited strong operational execution and expansion of manufacturing capacity for meeting demand.
As of May 24, 2024, the company reported its largest-ever order book of 3.3 GW, which has since grown further. The management expects continued strong orders, especially from commercial and industrial sectors.
Analyst Outlook and Bounce-Back Potential
Analysts have a generally positive view on Suzlon’s future. They cite the strong order book, improving finances, and supportive government policies for renewable energy. Some analysts expect a price recovery, with average targets suggesting a rise.
For instance, Motilal Oswal analysts predict a target price of ₹70, which would be over 20% higher than recent levels, pointing to strong growth potential compared to competitors. Analysts’ consensus target price is around ₹71.56.
Factors that may support a rebound include Suzlon’s leading turbine model, which makes up 92% of its order book, strategic partnerships, and a focus on high-value orders. The company is also improving its manufacturing capacity to fulfill its large order pipeline.
However, challenges remain. The stock’s high price-to-earnings (P/E) ratio raises concerns for some investors. Previous governance issues, while addressed, were noted by exchanges recently.
Additionally, uncertainty lingers regarding the long-term outlook beyond FY27, as current order momentum partially relies on government incentives, like the inter-state transmission system waiver, which will decrease over time.
In conclusion, while Suzlon Energy’s stock has pulled back in recent months, its strong financial results, record order book, and favorable industry trends provide a basis for potential recovery.
The stock’s future performance depends on Suzlon’s ability to execute well, navigate market changes, secure new orders after incentives wane, and justify its current valuation to investors.