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With over 430% returns in 3 years and a strong order book of 5,600+ MW, Suzlon is driving the renewable energy revolution, yet it experiences a share price dip of 16%. Investors are now at an impasse on whether they need to hold their shares or sell them.
Suzlon Energy Ltd. is one of India's leading renewable energy companies, well-known for its role in wind energy production and wind turbine manufacturing. Over the years, it has played a significant part in India’s clean energy transition. Its share price has experienced major highs and lows, drawing the attention of both long-term investors and short-term traders.
As of May 9, 2025, the Suzlon share is priced at ₹51.65 per share, down by 2.95% from the previous trading session. While this might seem like a dip in the short term, the company has delivered impressive gains over the past few years. Suzlon shares have returned more than 430% to investors over the past three years, highlighting its strong comeback after previous financial struggles.
During the first half of 2025, Suzlon Energy shares have been under pressure, declining by around 16% year-to-date. This fall follows a strong rally in the past few years, where the stock had multiplied several times. The recent drop is linked to general market volatility, profit booking by investors, and temporary issues in the renewable energy sector, such as project delays and raw material cost increases.
Despite the short-term correction, many market observers continue to believe that the long-term outlook for Suzlon remains positive due to its improving fundamentals and India's growing demand for renewable energy.
Suzlon has shown notable improvement in its financials over the last year:
Market Capitalization: Around ₹70,500 crore, placing it among the large-cap renewable energy companies in India.
Price-to-Earnings Ratio (P/E): About 74, which is high compared to the average P/E of its sector, indicating that investors expect high future earnings.
Earnings Per Share (EPS): ₹0.70, showing positive earnings after years of losses.
Return on Equity (ROE): Nearly 17%, which is a strong figure for a recovering company.
Q3 FY25 Net Profit: ₹387.76 crore, supported by better cost control and strong revenue growth.
Q3 FY25 Revenue: ₹3,002 crore, an increase of over 90% compared to the same quarter last year.
These results reflect that the company has turned the corner financially and is building a solid foundation for sustainable growth.
From a technical perspective, Suzlon's share price is currently below its key moving averages, such as the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This suggests a short-term bearish trend or weakness in stock momentum.
The Relative Strength Index (RSI), a tool used to check whether a stock is overbought or oversold, is at 55. This indicates that the stock is in a neutral zone—not too expensive or too cheap at current levels.
A breakdown of Suzlon’s shareholding shows strong participation by both retail and institutional investors:
Promoters: 13.25% – Indicates that the original owners still hold a notable share.
Foreign Institutional Investors (FIIs): 23.04% – Strong interest from foreign investors.
Domestic Institutional Investors (DIIs): 6.99% – Indian mutual funds and insurance companies are invested.
Public and Others: 56.72% – More than half of the shareholding lies with the general public.
The high public shareholding shows strong trust from retail investors, while the presence of foreign investors signals confidence from global market participants.
Market analysts have shared a mixed but cautiously optimistic view on Suzlon's stock.
Some brokerage firms expect the stock to rise by over 20% in the coming months. One such estimate suggests a potential price of ₹70, citing the company’s growing profits, order book strength, and operational efficiency. Another target from a different analyst places the expected price at ₹71, supported by the company’s manufacturing expansion and long-term contracts.
At the same time, some experts suggest caution due to the stock's recent high valuation and current technical weakness. They advise that while the long-term story remains intact, short-term fluctuations can be expected.
Suzlon's growth plans are supported by its strong order book, which includes wind turbine supply agreements for over 5,600 MW of projects. This includes large orders from major organizations such as NTPC and other public and private sector firms.
India’s push towards renewable energy, with a target of 500 GW of non-fossil fuel energy capacity by 2030, creates a favorable environment for companies like Suzlon. With wind energy expected to play a key role in that expansion, Suzlon stands to benefit significantly.
According to market predictions, Suzlon’s share price could touch ₹88 by the end of 2025 if its financial performance remains strong and execution of orders continues smoothly. This would mean a gain of more than 50% from current levels.
Despite positive signs, there are several challenges to monitor:
Raw Material Costs: Fluctuations in the price of steel, copper, and other materials can impact profit margins.
Project Delays: Any delays in government approvals or land acquisition could affect revenues.
Debt Levels: Though much improved, the company still needs to manage its debt carefully.
Market Sentiment: A broader market correction or negative news in the renewable energy sector could pull the stock down temporarily.
These risks must be weighed against the company’s potential before making any investment decisions.
Suzlon Energy has come a long way from its earlier debt and operational troubles. With a healthier balance sheet, increasing profits, and strong government support for renewable energy, the company is now in a better position to grow steadily.
While the recent fall in the stock price may concern some investors, the long-term story for Suzlon appears promising. The company’s strong order book, improving earnings, and strategic partnerships give it an edge in India's growing clean energy market.
For those considering exposure to the renewable energy sector, Suzlon Energy remains one of the most watched and traded stocks, backed by strong fundamentals and national energy goals. However, regular review of its financial performance and industry developments will remain essential for tracking the share’s future trajectory.
