Suzlon Energy Limited, a prominent player in India's renewable energy sector, has recently exhibited notable activity in the stock market. As of February 24, 2025, Suzlon's share price stands at ₹54.23, reflecting a slight decrease of 1.71% from the previous close of ₹55.17. This movement prompts an analysis of whether Suzlon can sustain its upward trajectory in the stock market.
Over the past year, Suzlon's stock has appreciated by approximately 24.67%, outperforming the NIFTY index, which experienced a 2.69% decline in the same period. Notably, the stock reached a 52-week high of ₹86.04 on September 12, 2024, and a low of ₹35.49 on March 14, 2024. The current price indicates a 35.88% decline from its peak, yet a substantial 55.41% increase from its annual low. This volatility underscores the dynamic nature of the renewable energy sector and investor sentiment towards Suzlon.
In the quarter ending December 31, 2024, Suzlon reported a net profit of ₹386.92 crore, marking a significant 90% year-on-year increase. Revenue from operations also surged by 91% to ₹2,968.81 crore, up from ₹1,552.91 crore in the corresponding quarter of the previous year. This robust financial performance reflects Suzlon's effective operational strategies and its ability to capitalize on the growing demand for renewable energy solutions.
Suzlon has secured several substantial orders, bolstering its position in the renewable energy market. On February 12, 2025, the company received a repeat order of 201.6 MW from Oyster Renewable, expanding their partnership to 283.5 MW within nine months. Additionally, on January 24, 2025, Suzlon and Torrent Power achieved a milestone by reaching 1 GW of wind energy capacity, including a new 486 MW hybrid order. These developments not only enhance Suzlon's order book but also signify growing confidence among clients in Suzlon's capabilities.
Financial analysts have shown optimism regarding Suzlon's future prospects. Investec, a notable brokerage firm, initiated coverage with a 'buy' rating and set a target price of ₹70, suggesting a potential upside of approximately 27.5% from the current levels. This positive outlook is based on Suzlon's strong order book, improved financial metrics, and strategic positioning in the renewable energy sector.
Despite positive financial indicators, Suzlon's stock experienced a 2.8% decline on February 24, 2025, trading at ₹53.75. This movement was in line with the BSE Power index, which shed 1.37% on the same day. Such fluctuations can be attributed to broader market sentiments, including profit-booking by investors and sector-specific dynamics. It's essential to consider these external factors when evaluating Suzlon's stock performance.
Suzlon Energy Limited has demonstrated resilience and growth in the renewable energy sector, supported by strong financial performance and strategic order acquisitions. While recent stock market fluctuations reflect broader market sentiments, the company's fundamentals and positive analyst outlook suggest potential for continued growth. Investors should monitor market trends and Suzlon's strategic initiatives to assess the sustainability of its bullish trajectory in the stock market.