Suzlon Energy, founded in 1995, is a prominent renewable energy producer in India. It is a leading player in the wind energy sector, specializing in the development, manufacturing, installation, and maintenance of wind turbines.
Suzlon has established itself as a global renewable energy solutions provider, with a presence in over 18 countries and a significant market share in India.
In 2008, Suzlon Energy’s share price reached its highest point at Rs 459. But it has significantly declined since 2008, and currently, it is considered a penny stock with a price of around Rs 8.
The reason for this downfall was the 2008 market crash, at that time, Suzlon was progressively taking huge debts to expand business entirely on European and US markets. When Lehman Brothers collapsed in 2008 and Suzlon made huge losses in both regions due to the global economic crisis.
Suzlon had restructured its business and debt management. It has successfully reduced its debt in the past few years.
In this article, we’re going to take a close look at Suzlon’s share price right now. We’ll explore the things that are affecting its movement and discuss what experts think the share price could be in 2025.
Suzlon Share Price Target 2025
Suzlon Energy stock is currently trading at Rs 8.50 to Rs 9.00 price levels. According to current analyst opinions, the consensus price target for Suzlon’s shares in 2025 is around Rs. 12 to Rs. 15. The estimated target price is based on the company’s current financial performance and growth prospects, as well as the overall economic conditions of the country.
Some analysts believe that Suzlon’s shares have the potential to rise significantly in the coming years if Suzlon manages to reduce its debt and executes its growth plans effectively.
Price targets are based on a combination of fundamental, and technical analyses of Suzlon’s performance. Let’s have a look at the fundamental & technical analysis of Suzlon Energy.
Fundamental Analysis of Suzlon Stock
Let’s look at some of the factors considered by banks and experts in their reports to understand the fundamental analysis of Suzlon Energy.
Revenue growth: Suzlon Energy’s shown around 50% growth from Oct 2022 till Dec 2022, but after that, it started falling and currently trading around 8.50 which is 26% lower than its Dec 2022 rise. Suzlon Energy’s revenue growth for the last 3 years is at 22.8% CAGR. Though, its
The company’s revenues are expected to improve in the financial year 2022-23 as the first 3 quarters’ reports have better results as compared to last year’s revenue.
|Year||Revenues (in Crores)|
|2022-23 (till Dec 2022)||4277|
Profitability: Suzlon Energy reported a profit of Rs 2567 crores for the (Sep-Dec 2022 quarter) in the fiscal year 2021-22. However, Suzlon Energy’s net profit is a mixed bag since 2014 as the major chunk of revenue is going into repaying debt and interest on it.
|Year||Profit (in crores)|
|2022-23 (3 Quarters)||2567|
Growth Plans: Since the Government of India has announced plans to reach 500 GW of renewable fuel energy capacity by 2030 and going to invite bids for 8-gigawatt wind projects annually, it can be a positive factor for Suzlon’s growth.
As per their latest Concol, Suzlon also has some wind turbine orders in line with state governments and big players like Adani Energy.
Technical Analysis of Suzlon Stock Price
According to technical analysts, Suzlon’s stock has had a sideways trend for the last 2 years. The stock has been moving in the range of 8 to 12.
Suzlon Energy is currently trading below its 200-day moving average, which is a bearish signal.
Factors Influencing Suzlon’s Share Price
A. Positive Factors
- Government Renewable Energy Plans: Government initiatives such as subsidies, tax incentives, and renewable energy targets create a conducive environment for Suzlon to expand its operations and increase its market share.
- Global Demand for Renewable Energy: The increasing global demand for clean and sustainable energy sources presents a significant opportunity for Suzlon’s growth.
- Reducing Debt Burden: By implementing effective debt management strategies, such as debt restructuring, refinancing, and improving financial performance, Suzlon can strengthen its financial position and allocate resources more efficiently toward research, development, and expansion activities.
- Capital raising: If Suzlon successfully raises capital through NCDs (in talks with JP Morgan), it could strengthen its balance sheet and improve investor sentiments.
B. Negative Factors
- Regulatory Changes: Changes in government regulations and policies related to the renewable energy sector can significantly impact Suzlon’s growth prospects. Alterations in subsidy programs, tax incentives, or energy procurement norms can create uncertainties and pose challenges for the company, affecting its operations and financial performance.
- Economic Downturns: During economic downturns or periods of recession, there may be a decline in overall investment and demand for renewable energy projects. Reduced capital expenditure by governments, businesses, and individuals can limit the growth opportunities for Suzlon, affecting its order book and revenue generation.
- Raw Material Price Hike: The cost of raw materials, such as those required for manufacturing wind turbines, can fluctuate significantly. Increases in raw material prices, such as steel, aluminum, and composites, can increase Suzlon’s production costs, thereby impacting its profit margins and overall growth potential.
Predicting the Suzlon share price target for 2025 is an intriguing prospect for investors in the renewable energy sector. While expert opinions provide valuable insights and estimate that the target price of Suzlon shares by 2025 could be around Rs 12-15 per share.
You can also read about other energy stocks’ target prices –
- Tata Power Share Price Target
- Adani Power Shares Target Price
- IEX Share Price Target
- JP Power Share Price Target
Suzlon Energy’s share price is influenced by various factors, including market conditions, industry trends, company-specific developments, and analyst assessments.
It is challenging to determine whether Suzlon Energy will be a good investment in 2025. However, considering the company’s ongoing projects, expansion plans, and the increasing global demand for renewable energy, there could be growth potential for the company.
To invest in Suzlon Energy shares, you will need to open a demat account with a brokerage firm. Once you have a demat account, you can place an order to buy Suzlon Energy shares through the brokerage’s trading platform.
The price-to-earnings (P/E) ratio of Suzlon Energy can vary and is subject to market conditions. It is advisable to check the latest financial reports or consult with a financial professional for the most up-to-date information.
Suzlon Energy’s growth strategy involves various initiatives, including expanding its wind energy project portfolio, forming strategic partnerships, leveraging technological advancements, and exploring new markets to capitalize on the global demand for renewable energy.
Investing in Suzlon Energy carries certain risks, including regulatory changes, economic downturns, technological advancements by competitors, and project execution challenges. These factors can impact the company’s financial performance and share price.
Suzlon Energy has not paid any dividends in the recent past.
The suitability of Suzlon Energy as a long-term investment opportunity depends on various factors, including individual investment goals, risk tolerance, and market conditions. Conducting thorough research and seeking advice from a financial professional can help in making an informed investment decision.
Suzlon’s share price is influenced by various factors. Firstly, government policies and regulations that promote renewable energy adoption play a pivotal role. Changes in tax incentives, subsidies, or energy procurement norms can significantly impact Suzlon’s share price. Moreover, the company’s financial performance, technological advancements, and market competition are also key drivers.
Suzlon has been actively involved in various wind energy projects across different geographies. Any updates on the progress, successful completion, or new project announcements can have a positive impact on Suzlon’s share price.
Furthermore, strategic partnerships and collaborations can play a crucial role in shaping the company’s future prospects. Suzlon’s ability to form alliances with key industry players, technology providers, or governments can open up new avenues for growth and contribute to its share price movement.