Buy Suzlon Energy; target of Rs 68: Geojit Financial Services

Geojit Financial Services is bullish on Suzlon Energy has recommended buy rating on the stock with a target price of Rs 68 in its research report dated November 18, 2024.

Broker Research

November 19, 2024 / 11:20 IST

Buy

26 Aug, 2025 12:21

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Geojit Financial Services research report on Suzlon Energy

Suzlon energy is a vertically integrated wind turbine manufacturer and O&M service provider with over 20.9GW of installed capacity across the globe. Q2FY25 consolidated revenues registered 48% YoY growth as the quarter saw 256 MW of WTG deliveries (94% YoY growth), the highest delivery in the second quarter in the last seven years despite unfavorable climate conditions. WTG revenues grew at 72% YoY to stand at Rs.1,507cr. While OMS segment revenues stood at Rs.565.5cr (up 18% YoY), foundry and forging division revenues declined 33% YoY, while intersegment sales increased marginally at 1% to stand at Rs.65.6cr. EBITDA stood at Rs.294cr, registering 31% YoY growth; however, the margins declined by 185bps in the quarter and 82bps in H1FY25 as the company incurred technological investments and ramped up capacity for future deliveries. Non-cash provisions of about 32 crores on account of ESOPs granted to employees pushed employee costs higher. Q2FY25 PBT grew 97% YoY to Rs.202cr. Adjusted PAT stood at Rs.201cr., registering 46%YoY growth. The balance sheet continues to remain healthy post Renom consolidation with net cash at Rs.1,277cr.

Outlook

Recent order wins indicate preference for the turbine manufacturer among state, PSU, and C&I clients, and recent acquisition of Renom Energy can enable tapping into over 32GW of non -Suzlon O&M opportunities. Recent correction places the stock at attractive valuations. We value at 45X on Sept.2027 EPS of Rs.1.5, setting a target of Rs. 68, and maintain our BUY rating.

For all recommendations report, click here