Suzlon Energy’s share price fell to Rs. 46.01, a decline of 1.71%, following increased selling pressure after reaching an intraday high of Rs. 46.74. Despite this dip, the company reported strong earnings, with earnings per share (EPS) increasing 181.89% year-on-year, and its valuation remains below the sector average price-to-earnings ratio (PE).
The stock opened at Rs. 46.60 but encountered selling as the day progressed, dipping to a low of Rs. 45.88. With current trading levels near its 52-week low of Rs. 44.88 and significantly below its 52-week high of Rs. 74.30, this fluctuation indicates a challenging market environment for the company. Over 3.04 crore shares changed hands, valued at Rs. 14,008 lakh, with a volume-weighted average price (VWAP) of Rs. 46.19.
Market Performance and Analyst Sentiment
Currently, Suzlon’s market capitalisation stands at Rs. 63,092 crore. The stock has shown a loss of 1.69% during afternoon trade, but it appears relatively attractive compared to its sector peers, trading at a trailing PE ratio of 19.50 against a sector average of 47.32. Analysts remain optimistic, with 91% of those tracking the stock recommending a ‘Buy’ and 9% suggesting a ‘Hold’.
The management has outlined a growth target of 60% for the fiscal year FY26, bolstered by advancements in technology including a new 5MW turbine platform and plans to establish AI-enabled manufacturing facilities. These initiatives aim to enhance operational efficiency and reduce costs.
Future Prospects and Challenges
With a renewed focus on Europe following the India-EU free trade agreement, Suzlon is optimistic about potential export growth and reduced funding costs. The company had previously exited the European market in the mid-2000s due to debt issues during the 2008 financial crisis. Now, with a strengthened balance sheet, management is keen to re-establish a presence in the region.
Despite these positive developments, Suzlon faces challenges including land acquisition delays and power evacuation issues that have affected project timelines. The current supply capacity exceeds actual dispatches by 15-20%, indicating that demand is still catching up. Management anticipates improvements in execution in the coming quarters.
Brokerage firm Nuvama Institutional Equities has maintained a ‘Buy’ rating for the stock, setting a target price of Rs. 55. This valuation is based on 30 times earnings estimates for FY28. However, the recent decline in share price could impact this bullish sentiment.
Immediate resistance levels for Suzlon shares are identified at Rs. 47.33 and Rs. 47.86, while key support levels are near Rs. 46.20 and Rs. 45.67. With the stock trading close to these support levels, short-term movements may hinge on broader market sentiment and new order announcements.
In summary, while Suzlon shares are under short-term pressure, the company’s strong earnings growth, European expansion plans, and favorable analyst outlook provide a foundation for potential long-term recovery. Continuous improvements in project execution and consistent order inflows will be crucial for maintaining momentum and unlocking further upside from current levels.