Buy Suzlon Energy; target of Rs 75: Geojit Financial Services

Geojit Financial Services is bullish on Suzlon Energy has recommended buy rating on the stock with a target price of Rs 75 in its research report dated August 21, 2025.

Broker Research

August 22, 2025 / 09:33 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. Q1FY26 operating revenue surged 55% YoY to ₹3,131.7 cr, driven by strong performance in the Wind Turbine Generator (WTG) segment, which delivered 444 MW, marking a 62% YoY increase. OMS division posted a modest 10% YoY revenue growth for the quarter, while the Forging division surged 60% YoY to ₹146.49 cr. Suzlon’s share in Forging rose from 40% to 62%, driven by strong order execution. Gross profit rose 58% YoY, even as raw material costs jumped 85%, driven by effective price pass-through strategies that helped maintain profitability. Higher capacity utilization in the WTG and forging business, led to stronger operating leverage. As a result, EBITDA reached ₹599.07 cr, with a margin expansion of 82.3 bps. Profit before tax (PBT) grew 52% YoY to ₹459.23 cr. However, a ₹134 cr deferred tax charge led to higher tax expenses, moderating the growth in profit after tax (PAT), which stood at ₹324.32 cr, up 7% YoY over a high base.

Outlook

Suzlon’s ALMM compliance and backward integration offer a strong competitive moat, but sustaining margin discipline remains key to preserving pricing power. Factoring in execution risks, we revise our valuation multiple to 35x (from 38x earlier) FY27E EPS of ₹2.2 to arrive at a target price of ₹75, upgrading our rating to a BUY recommendation.

For all recommendations report, click here