SUZLON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

📊 Core Financials Overview

Profitability

ROE of 45.6% and ROCE of 36.2% are outstanding, signaling highly efficient capital deployment.

EPS of ₹1.33 and PAT of ₹346 Cr (down from ₹1,144 Cr) show strong earnings, though the QoQ drop suggests volatility.

Quarterly profit variation of 18.5% indicates decent momentum despite the drop.

Balance Sheet Strength

Debt-to-equity ratio of 0.01 — virtually debt-free, a major strength for a capital-intensive sector.

Book Value of ₹4.08 vs Current Price ₹59.1 → P/B ratio ~14.5, reflecting aggressive pricing.

No dividend yield, consistent with reinvestment focus.

Cash Flow & Stability

PEG ratio of 0.74 suggests undervaluation relative to growth.

RSI at 50.3 and MACD negative indicate neutral technical momentum, with potential for consolidation.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 47.4 Fairly valued vs industry PE of 49.5

P/B Ratio ~14.5 Premium pricing

PEG Ratio 0.74 Attractive valuation

Intrinsic Value ~₹50–₹55 Slightly below current price

Suzlon appears slightly overvalued, but its growth metrics and balance sheet justify a premium.

🌬️ Business Model & Competitive Edge

Sector: Suzlon Energy Ltd is a leading renewable energy solutions provider, specializing in wind turbine manufacturing and EPC services.

Strengths

Strong ROE/ROCE and near-zero debt

Institutional interest rising (DII +1.44%)

Government push for renewables and green energy transition

Challenges

High valuation multiples and volatile earnings

FII holding declined slightly (−0.02%)

Book value remains low relative to market cap

According to MarketScreener’s analyst consensus, Suzlon is viewed positively, with upward revisions in sales forecasts and strong margin performance. However, valuation remains high relative to tangible assets and cash flows.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹50–₹55

Below DMA 50/200 (~₹60) and closer to intrinsic value

RSI and MACD suggest waiting for technical confirmation before entry

🧭 Long-Term Holding Guidance

Hold if Already Invested: Strong fundamentals and sector tailwinds support long-term potential.

Accumulate on Dips: Especially near ₹50 for better margin of safety.

Watchlist Triggers

EPS consistency and margin expansion

New project wins or government contracts

Institutional accumulation and volume breakout

Suzlon is a high-potential renewable energy play with excellent capital efficiency and minimal debt. While valuation is rich, its strategic position in India’s green energy future makes it a compelling long-term candidate. You can explore more on TopStockResearch’s fundamental dashboard or MarketScreener’s analyst ratings.

Edit in a page