Suzlon Energy, a leading wind energy company, witnessed a new tide amidst a bearish market on Thursday. The stock freezes at 5% upper circuit on November 14, recovering slightly from its 22% drop in the previous 5 sessions. The outlook on Suzlon is a mixed bag with JM Financial recommending BUY on the stock, while Ventura Securities suggests SELL.
Suzlon Energy Share Price:
On November 14, Suzlon Energy stock locked itself on a 5% upper circuit to Rs 56.78 apiece. Its market cap stood at Rs 77,483.31 crore. The stock's 52-week high and low is at Rs 86.04 apiece and Rs 33.83 apiece respectively.
Upper circuits in general terms mean that there were several buyers but no sellers in the stock on this day. Currently, the traded quantity in Suzlon stood at 1,15,06,524 equity shares on BSE, while its deliverable quantity was at 58,76,382 equity shares, which is 51.07% of the traded quantity.
The latest upside is a recovery in Suzlon shares which fell by nearly 22% from November 6th to November 13th. Prior to this, Suzlon shares were in green on November 5th at Rs 67.35 apiece. Despite the volatility in November so far, Suzlon shares YTD performance with gains of 47.56%.
Suzlon Energy Top Management Change:
Earlier, on November 8th, Ishwar Chand Mangal, the CEO - of New Business and one of the SMPs of the Company, resigned from the services of the Company with effect from the close of business hours on 8th November 2024 and accordingly, he ceased to be the SMP of the Company from the date of his resignation.
The reason behind his exit was to explore new challenges and opportunities outside.
BUY/SELL Suzlon Energy Shares?
JM Financial On Suzlon Energy:
As per JM Financial, Suzlon has recorded the largest-ever order book of 5,131 MW as on Oct'24 (1,613 MW in 2QFY24) with a diversified mix (91% 3MW series; 54% C&I customers; 23% PSU customers; 78% non-EPC scope; spread across 7 States). Suzlon has signed India's largest wind energy order of 1,166MW from NTPC Green Energy Limited as it becomes eligible for bidding PSU tenders.
Further, JM's note highlighted that India is committed to achieving 500 GW (50% RE in energy mix) of non-fossil fuel capacity by 2030 which includes 100 GW (122 GW by FY32) of wind capacity. The evolution of the structure of projects from vanilla solar/wind to RTC, FDRE and other combinations requires wind components (higher than solar in most cases) in all future projects. The management believes in bidding on 35GW+ of wind-related tenders from Central, State utilities and C&I customers.
Also, to expedite wind energy additions, various policy initiatives have been taken viz. state-specific sub-bids for wind, pooling of tariff for uniform RE tariff, RPO (RE purchase obligations) trajectory (29.91% in FY24 to 43.33% in FY30 with wind-specific RPO), waiver of ISTS charges for 25 years for RE projects commissioned up to 30 Jun'25 and others, the brokerage stated.
On the valuation, JM's note said, "Given the gradual building up of momentum for higher execution, healthy order book, more-healthy bid pipeline, strengthening of balance sheet and the organization we maintain our BUY rating on the stock with a TP of INR 81 (based on a 40x Sept'26 EPS)."
Ventura Securities On Suzlon Energy:
Ventura's latest note said, that with a robust order book, which has surged alongside that of Inox Wind, the wind turbine market is seeing a resurgence after a lull since FY17. Additionally, competitive intensity has decreased as major players have exited the space, leaving Suzlon and Inox as the dominant players poised to capture most of the market.
Also, it highlighted that while Suzlon is well-positioned to meet demand for the next 3-4 years, and has improved access to capital, the stock's valuation multiples reflect excessive optimism, making it unsustainable in the long term.
That being said, on the valuation, Ventura's note said, "We issue a Sell recommendation with a target price of INR 50, representing a 27.5% downside from the current price of 69. Despite Suzlon's leading market position and recent recovery, the current stock price does not adequately reflect the risks related to cash flow generation, execution, and overvaluation."
Suzlon is India's leading renewable energy solutions provider offering a 360-degree total solutions package to its customers that covers the entire spectrum of wind energy projects.
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