SUZLON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | SUZLON | Market Cap | 75,617 Cr. | Current Price | 55.6 ₹ | High / Low | 74.3 ₹ |
| Stock P/E | 24.3 | Book Value | 5.37 ₹ | Dividend Yield | 0.00 % | ROCE | 36.2 % |
| ROE | 45.6 % | Face Value | 2.00 ₹ | DMA 50 | 47.9 ₹ | DMA 200 | 51.5 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.05 % | PAT Qtr | 298 Cr. | PAT Prev Qtr | 1,328 Cr. |
| RSI | 71.0 | MACD | 3.60 | Volume | 10,79,82,730 | Avg Vol 1Wk | 15,54,29,476 |
| Low price | 38.2 ₹ | High price | 74.3 ₹ | PEG Ratio | 0.38 | Debt to equity | 0.01 |
| 52w Index | 48.2 % | Qtr Profit Var | -24.1 % | EPS | 2.28 ₹ | Industry PE | 37.9 |
📊 SUZLON Energy Ltd. demonstrates strong fundamentals with exceptional ROE (45.6%) and ROCE (36.2%), supported by a very low debt-to-equity ratio (0.01). The PEG ratio of 0.38 indicates undervaluation relative to growth, making it attractive for long-term investors. However, quarterly PAT dropped sharply (₹1,328 Cr → ₹298 Cr), raising concerns about earnings consistency. Technical indicators show overbought conditions with RSI at 71.0, though the stock trades above both 50 DMA (₹47.9) and 200 DMA (₹51.5), reflecting strong momentum.
💰 Ideal Entry Price Zone: ₹52 – ₹54 (aligned with 200 DMA support and valuation comfort).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider partial profit booking near ₹65–70 resistance. Long-term holding is justified if earnings stabilize and growth momentum continues.
✅ Positive
- Strong ROE (45.6%) and ROCE (36.2%) highlight operational efficiency.
- PEG ratio (0.38) signals undervaluation relative to growth.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- FII holdings increased (+0.12%), showing foreign investor confidence.
- Stock trading above 50 DMA and 200 DMA reflects technical strength.
⚠️ Limitation
- Quarterly PAT decline (₹1,328 Cr → ₹298 Cr) raises earnings concerns.
- Dividend yield at 0% offers no income support.
- High RSI (71.0) indicates overbought conditions.
- DII holdings decreased (-0.05%), showing reduced domestic support.
📉 Company Negative News
- Volatility in quarterly earnings performance.
- Overbought technical indicators raise short-term risk.
📈 Company Positive News
- Strong profitability metrics with high ROE and ROCE.
- Low leverage enhances financial resilience.
- Foreign institutional investors increasing stake.
🏭 Industry
- Renewable energy sector trading at industry PE of 37.9, offering growth potential.
- Sector supported by government initiatives and global clean energy demand.
🔎 Conclusion
SUZLON is a strong candidate for long-term investment, driven by high ROE/ROCE and undervaluation signals. Entry near ₹52–₹54 offers favorable risk-reward. Hold for 3–5 years with profit booking near ₹65–70 resistance. Despite earnings volatility and overbought conditions, SUZLON’s fundamentals and sectoral tailwinds make it attractive for growth-focused portfolios.