SUZLON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

🌬️ Suzlon Energy Ltd (SUZLON) showcases exceptional capital efficiency, minimal debt, and strong sector alignment, though valuation concerns and profit volatility suggest a balanced entry strategy.

📈 Positive

• ⚡ Capital Efficiency: ROCE of 36.2% and ROE of 45.6% reflect outstanding operational performance.
• 📉 Low Leverage: Debt-to-equity ratio of 0.01 ensures financial resilience and flexibility.
• 📊 PEG Ratio: 0.74 indicates reasonable valuation relative to growth potential.
• 📈 EPS Growth: ₹1.33 with a quarterly profit increase of 18.5% supports earnings visibility.
• 🌱 Sector Tailwinds: Strong alignment with India’s renewable energy push and global decarbonization goals.

⚠️ Limitation

• 💰 Elevated Valuation: P/E of 47.6 is slightly below industry average but still high for a turnaround story.
• 📉 Profit Volatility: PAT dropped from ₹1,144 Cr. to ₹346 Cr., indicating inconsistency.
• 📉 Weak Book Value: ₹4.08 suggests limited asset backing relative to market price.
• 📉 Institutional Outflows: FII and DII holdings declined, signaling cautious sentiment.
• 📉 Technical Resistance: RSI at 67.9 and MACD near flat suggest limited short-term upside.

📉 Company Negative News

• Sequential profit decline raises concerns over one-off gains or margin pressure.
• Stock trading near 52-week midpoint, indicating consolidation phase.

📈 Company Positive News

• Strong quarterly volumes and operational turnaround post debt restructuring.
• New orders and turbine installations across India signal business momentum.
• Government incentives and policy support for wind energy bolster long-term outlook.

🏭 Industry

• Renewable energy sector benefits from climate goals, policy incentives, and rising energy demand.
• Industry P/E of 51.3 reflects growth optimism and capital-intensive nature.
• Peers include Inox Wind, Siemens Gamesa, and Adani Green Energy.

🧾 Conclusion

• 📉 Entry Zone: ₹54–₹57 could be a favorable accumulation range based on DMA and RSI levels.
• 📈 Long-Term View: Hold for 3–5 years; strong fundamentals and sector tailwinds support sustained growth.
• 🔍 Valuation Watch: Monitor earnings consistency and order book expansion before aggressive accumulation.