Suzlon Energy share price jumped nearly 5% on Monday, lifted by strong buying momentum. The green energy stock rallied as much as 4.64% to Rs 49.30 apiece on the BSE.
The rally in Suzlon share price was also supported by robust trading volumes. Around 6 crore equity shares of the company changed hands on stock exchanges, as compared with its one-week average trading volumes of 4 crore shares.
The wind turbine manufacturer Suzlon Energy is looking to expand into a full-stack renewable energy platform, covering wind, solar, battery storage, project development and asset management.
In his letter to shareholders, Suzlon Group CEO Ajay Kapur said the renewable energy market is shifting towards solutions that can deliver affordable, predictable and round-the-clock clean power.
To align with this shift, the company has reorganised its business into four verticals — RE Tech, RE DevCo, RE Projects and RE Asset Management Services (AMS).
Last month, Suzlon Energy has reported its earnings for the first quarter of FY27, with a marginal fall in its net profit.
Suzlon Energy's Q1FY27 consolidated net profit fell 6% year-on-year (YoY) to Rs 305 crore, while its revenue from operations rose 22.5% YoY to Rs 3,819 crore.
The company's EBITDA declined marginally to Rs 595 crore from Rs 599 crore, while EBITDA margin narrowed to 15.6% from 19.2%.
Suzlon's first-quarter deliveries rose 14% YoY to 506 MW, while commissioning grew 2.3 times to 269 MW. The company's cumulative order book stood at 6.1 GW, with 84% of the orders coming from the public sector undertaking (PSU) and commercial and industrial (C&I) segments.
Analysts believe the company's evolution under Suzlon 2.0 expands its addressable market and diversifies beyond standalone turbine sales.
“While a higher EPC mix and increasing DevCo investments are likely to raise capital intensity, with ROCE moderating from ~37% in FY26 to ~23% by FY28E, we believe these investments can strengthen long-term growth visibility. Our estimates remain conservative relative to Street expectations and already factor in near-term margin pressures and execution risks,” said Geojit Financial Services.
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Given its net-cash balance sheet, ~19% ROE and ~25% earnings CAGR, the brokerage firm values Suzlon Energy stock at 28x FY28E Adjusted EPS of Rs 2.0.
Geojit Financial Services upgraded Suzlon shares to ‘Buy', with a target price of Rs 56 per share.
Key downside risks include slower S175 adoption, weaker DevCo economics and higher working capital intensity, while faster margin normalisation, stronger execution and accelerated scaling of Suzlon 2.0 initiatives present upside risks, it said.
Technical Outlook
Suzlon share price continues to trade below key moving averages, indicating sustained weakness, noted Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.
“The MACD line remains below both the signal and zero lines, reinforcing the bearish bias. The ratio line in the Suzlon/Nifty ratio chart is also trending lower, highlighting continued underperformance against the benchmark,” said Shah.
According to him, the Rs 51.5 – Rs 52 zone is likely to act as a strong resistance, and the bearish bias is expected to persist as long as Suzlon shares trade below this zone.
At 2:10 PM, Suzlon share price was trading 3.27% higher at Rs 48.65 apiece on the BSE.
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