SUZLON - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

📊 Core Financials Analysis

Profitability & Growth

Massive quarterly PAT jump from ₹387 Cr. to ₹1,181 Cr. (QoQ growth of 320%) signals a strong turnaround.

ROCE at 32.4% and ROE at 41.3% are exceptional — indicating highly efficient use of capital.

EPS of ₹1.53 is modest, but improving rapidly.

Debt & Liquidity

Debt-to-equity ratio of 0.05 shows near-zero leverage — a major improvement from Suzlon’s historically high debt levels.

No dividend yield yet, which is typical for a company reinvesting for growth.

Cash Flow

While direct cash flow data isn’t provided, the sharp profit surge and low debt imply improving operational cash generation.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio 40.5 Reasonable vs. industry PE of 57.2

P/B Ratio ~13.7 High, but reflects turnaround expectations

PEG Ratio 0.18 Very attractive — suggests undervaluation

Intrinsic Value Slightly undervalued Based on growth-adjusted metrics

PEG ratio below 1 and improving fundamentals suggest the stock may be undervalued relative to its growth potential.

🌱 Business Model & Competitive Edge

Suzlon Energy is a leading player in wind energy — a sector aligned with global clean energy trends.

After years of financial stress, the company has executed a turnaround with strong profitability and reduced debt.

Competitive advantage lies in its scale, domestic manufacturing, and strategic positioning in India’s renewable energy push.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹50–₹58 range — near recent low of ₹46 and below 50 DMA (₹64.2), offering a good risk-reward setup.

Current Price: ₹61.8 — slightly below 50 DMA, RSI at 37.6 suggests oversold territory.

Long-Term View

Attractive for long-term holding given sector tailwinds, improving financials, and strong return metrics.

Ideal for growth-oriented investors willing to tolerate volatility.

Would you like a technical chart-based entry strategy or a peer comparison with Inox Wind or KP Energy?

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