SUZLON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | SUZLON | Market Cap | 62,803 Cr. | Current Price | 46.2 ₹ | High / Low | 74.3 ₹ |
| Stock P/E | 20.8 | Book Value | 5.37 ₹ | Dividend Yield | 0.00 % | ROCE | 36.2 % |
| ROE | 45.6 % | Face Value | 2.00 ₹ | DMA 50 | 51.0 ₹ | DMA 200 | 55.9 ₹ |
| Chg in FII Hold | 1.03 % | Chg in DII Hold | -0.91 % | PAT Qtr | 1,328 Cr. | PAT Prev Qtr | 346 Cr. |
| RSI | 36.0 | MACD | -1.58 | Volume | 8,03,71,488 | Avg Vol 1Wk | 7,09,33,583 |
| Low price | 44.8 ₹ | High price | 74.3 ₹ | PEG Ratio | 0.32 | Debt to equity | 0.01 |
| 52w Index | 4.51 % | Qtr Profit Var | 644 % | EPS | 2.22 ₹ | Industry PE | 35.4 |
💰 Financials: Suzlon Energy (SUZLON) demonstrates a strong turnaround with ROE at 45.6% and ROCE at 36.2%, reflecting exceptional efficiency. Debt-to-equity ratio of 0.01 highlights a virtually debt-free balance sheet, a major improvement from its historically leveraged position. Quarterly PAT surged to ₹1,328 Cr. from ₹346 Cr., marking a 644% profit variation. Cash flows are supported by rising renewable energy demand and improved operational efficiency.
📊 Valuation: Current P/E of 20.8 is below the industry average of 35.4, suggesting undervaluation relative to peers. P/B ratio (~8.6) is high compared to book value of ₹5.37, reflecting market optimism. PEG ratio of 0.32 indicates undervaluation relative to growth prospects. Intrinsic value analysis suggests the stock offers upside potential if earnings momentum sustains.
🌍 Business Model & Competitive Advantage: Suzlon is a leading renewable energy company specializing in wind turbine manufacturing and services. Its competitive advantage lies in strong domestic market presence, technological expertise, and government support for renewable energy. The company benefits from India’s clean energy push, though execution risks and global competition remain challenges.
📈 Entry Zone: Considering DMA 50 (₹51.0) and DMA 200 (₹55.9), accumulation is attractive in the ₹44–₹48 range. Long-term investors can hold for significant compounding returns, given Suzlon’s strong turnaround, low debt, and favorable industry tailwinds.
Positive
- Exceptional ROE (45.6%) and ROCE (36.2%).
- Debt-to-equity ratio of 0.01 indicates a virtually debt-free balance sheet.
- Quarterly PAT growth of 644% shows strong earnings momentum.
- Government support for renewable energy provides long-term growth opportunities.
Limitation
- P/B ratio (~8.6) suggests expensive valuation relative to book value.
- EPS at ₹2.22 remains modest compared to market price.
- Execution risks in large-scale renewable projects.
- High volatility in stock price (₹44.8–₹74.3 range).
Company Negative News
- Decline in DII holdings (-0.91%).
- Stock trading near 52-week low index (4.51%), reflecting recent weakness.
Company Positive News
- Increase in FII holdings (+1.03%), signaling foreign investor confidence.
- Strong quarterly profit surge supports turnaround story.
Industry
- Renewable energy industry P/E at 35.4 indicates Suzlon trades at a discount.
- Sector growth driven by government policies and global clean energy demand.
- Wind energy remains a key contributor to India’s renewable targets.
Conclusion
🔑 Suzlon Energy is a fundamentally strong turnaround story with exceptional returns, low debt, and strong industry tailwinds. While valuations are stretched on book value, its earnings growth and discounted P/E relative to peers make it attractive. Entry around ₹44–₹48 offers a favorable risk-reward balance. Long-term holding is justified for investors seeking exposure to India’s renewable energy growth story.
I can also prepare a comparative HTML snapshot against peers like Inox Wind and Adani Green to highlight Suzlon’s relative strengths and valuation.