⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUZLON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | SUZLON | Market Cap | 57,290 Cr. | Current Price | 42.0 ₹ | High / Low | 74.3 ₹ |
| Stock P/E | 18.4 | Book Value | 5.37 ₹ | Dividend Yield | 0.00 % | ROCE | 36.2 % |
| ROE | 45.6 % | Face Value | 2.00 ₹ | DMA 50 | 45.4 ₹ | DMA 200 | 52.6 ₹ |
| Chg in FII Hold | 1.03 % | Chg in DII Hold | -0.91 % | PAT Qtr | 298 Cr. | PAT Prev Qtr | 1,328 Cr. |
| RSI | 43.4 | MACD | -1.38 | Volume | 6,10,33,264 | Avg Vol 1Wk | 8,48,27,781 |
| Low price | 38.2 ₹ | High price | 74.3 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.01 |
| 52w Index | 10.7 % | Qtr Profit Var | -24.1 % | EPS | 2.28 ₹ | Industry PE | 33.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT dropped sharply from ₹1,328 Cr. to ₹298 Cr. (-24.1%), showing earnings volatility.
- Margins: ROE at 45.6% and ROCE at 36.2% reflect exceptional profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.01 indicates negligible leverage, ensuring strong financial stability.
- Cash Flow: Supported by renewable energy demand, though quarterly fluctuations remain high.
💹 Valuation Indicators
- P/E Ratio: 18.4 vs Industry PE of 33.0 → undervalued compared to peers.
- P/B Ratio: Current Price ₹42 vs Book Value ₹5.37 → ~7.8x, reflecting premium valuation relative to book.
- PEG Ratio: 0.29 → indicates undervaluation relative to growth potential.
- Intrinsic Value: Estimated fair value near ₹45–50, suggesting current price is close to fair value.
🌱 Business Model & Competitive Advantage
- Leading renewable energy company specializing in wind turbine manufacturing and services.
- Competitive advantage lies in scale, technology expertise, and strong domestic presence.
- Beneficiary of global and domestic push toward clean energy adoption.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹38–42, aligning with current levels and intrinsic value.
- Long-Term Holding: Suitable for investors seeking exposure to renewable energy; hold for 5+ years to benefit from industry growth.
✅ Positive
- Exceptional ROE (45.6%) and ROCE (36.2%) highlight strong efficiency.
- Low debt-to-equity ratio (0.01) ensures financial resilience.
- FII holdings increased (+1.03%), showing foreign investor confidence.
⚠️ Limitation
- Quarterly PAT decline (-24.1%) indicates earnings volatility.
- P/B ratio (~7.8x) reflects premium valuation relative to book value.
- High dependence on renewable energy policy support and subsidies.
📉 Company Negative News
- Sharp decline in quarterly profits from ₹1,328 Cr. to ₹298 Cr.
- DII holdings decreased (-0.91%), showing reduced domestic institutional confidence.
📈 Company Positive News
- Strong ROE and ROCE metrics despite profit decline.
- FII holdings increased, reflecting foreign investor trust.
- Beneficiary of renewable energy demand and government clean energy initiatives.
🏭 Industry
- Renewable energy industry is growing rapidly, driven by global climate commitments.
- Industry PE at 33.0 shows sector is valued higher than Suzlon’s current P/E, indicating undervaluation.
- Government policies and global ESG focus support long-term demand for wind energy solutions.
🔎 Conclusion
Suzlon demonstrates strong fundamentals with exceptional ROE, ROCE, and negligible debt, making it financially resilient. Despite short-term profit volatility, the stock trades at an undervalued P/E compared to the industry, supported by renewable energy demand. Entry around ₹38–42 offers favorable risk-reward. Long-term investors can hold for 5+ years to benefit from clean energy growth, though earnings volatility and policy dependence remain key risks.