Suzlon Share Price Target: Suzlon Energy’s Q1 profit declined by 6% and the stock fell by 10%, but many brokerages are still bullish. Know the latest rating and new target price of this stock.
Suzlon Energy Share News: Shares of Suzlon Energy, a leading company in the renewable energy sector, appear to be under pressure for two consecutive trading sessions. After the release of the first quarter (Q1) results of the current financial year, Suzlon shares fell to ₹ 46.93 on BSE. A decline of about 10% has been recorded in the stock in the last two days. However, despite this fall in the stock market, big brokerage houses remain bullish on Suzlon Energy for a long time. Know how far this stock can go and how much returns it can give…
Suzlon Energy Q1 Results: How was the company’s quarterly results?
Net Profit (PAT): Consolidated Net Profit declined by 6% to ₹305 crore in the June quarter (from ₹324 crore in the same quarter last year).
Operating Revenue: Revenue grew by 22.5% to ₹3,819 crore.
Record Delivery: The company recorded the highest ever turbine delivery of 506 MW in the first quarter.
Strong Order Book: The total order book has increased to 6.1 GW, of which 84% of orders are from PSU and C&I segments.
New Orders: Won new orders of 1 GW along with large EPC orders from Tata Power and Waaree Group.
Suzlon Energy: Delivery at record level, then why did profit and margin decline?
According to Suzlon Group CFO Rahul Jain, there were three main reasons for the temporary pressure on EBITDA and PAT margins.
- Project delivery was impacted by supply chain and logistics disruptions due to geopolitical tensions in the Middle East.
- The share of EPC (Engineering, Procurement, and Construction) business in the order book has increased to 32% (earlier 22%), which has changed the margin structure.
- The company is reinvesting in technology and strengthening four key growth engines under its ‘Suzlon 2.0’ vision.
Suzlon share price target
Motilal Oswal
Brokerage firm Motilal Oswal has given a target of ₹65 while maintaining its ‘Buy’ rating. He believes the decline in margins is temporary. Investors should keep an eye on 3 things going forward. Firstly, the pace of new order wins and project execution in FY27-28, secondly, improvement in wind turbine generator (WTG) margins and recovery of EBITDA margins after the logistics crisis is over.
JM Finance
JM Finance has given a ‘Buy’ rating on it and a target of ₹62. He says that the record delivery of 506 MW shows that the company’s demand is strong. With the commencement of transmission projects, the gap between installation and delivery will reduce.
Nuvama
Brokerage firm Nuvama has kept the stock in ‘Hold’ category. He has given its target price at ₹51. He believes that the wind industry may stabilize at the level of 8-10 GW in the next 2-3 years, hence there will be growth in the long term but its pace will increase slowly.
Suzlon share performance so far
- About 11% decline in 1 week
- Nearly 17% decline in 1 month
- Nearly 16% decline in 3 months
- About 23% weakness in 1 year
- The stock has given a return of about 717% in 5 years.
Disclaimer: This article has been written for informational purposes only. This should not be considered investment advice. The information given here is based on different public sources and brokerage reports. Investing in the stock market is subject to risks and you must consult your financial advisor before investing in any share.