SUZLON - Investment Analysis

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

Investment Rating: 4.2

📊 Fundamental & Valuation Analysis

Suzlon Energy Ltd is showing signs of a strong turnaround, backed by robust financials and sector tailwinds

ROE / ROCE: 41.3% / 32.4% — exceptional capital efficiency

PEG Ratio: 0.18 — undervalued relative to growth

Debt to Equity: 0.05 — nearly debt-free, a major improvement

P/E Ratio: 40.5 vs Industry PE of 57.2 — reasonable for a growth stock

Dividend Yield: 0.00% — not ideal for income investors, but reinvestment in growth is expected

The company has posted a 320% jump in quarterly profit, indicating strong operational momentum

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. Its inclusion in the F&O segment, a 381 MW order win

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, and favorable government policies for domestic wind turbine sourcing

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further strengthen its long-term outlook.

📉 Technical & Trend Analysis

Current Price: ₹61.8

DMA 50 / DMA 200: ₹64.2 / ₹60.7 — hovering near long-term averages

RSI: 37.6 — approaching oversold zone

MACD: -0.51 — bearish crossover

Volume: Higher than average — indicates accumulation

The stock has corrected ~28% from its 52-week high of ₹86, offering a potential value entry.

✅ Ideal Entry Price Zone

Based on technical and valuation indicators, the ideal entry zone is

₹58–₹62 range

RSI below 40 and MACD flattening suggest a near-term bottom

Strong support seen around ₹60–₹61

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📈 Long-Term Holding Strategy

If you already hold the stock

Holding Period: 5–10 years, given sector growth and Suzlon’s improving fundamentals

Exit Strategy

Partial exit near ₹100–₹120 if valuation overheats or RSI > 75

Full exit only if ROE/ROCE deteriorates or order book weakens significantly

Reassess if quarterly PAT growth slows below 15% for 2+ quarters

Suzlon’s long-term price targets suggest potential upside to ₹130 in 3 years and ₹300+ in 10 years

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🔍 Summary

Metric Value Verdict

ROE / ROCE 41.3% / 32.4% Outstanding

PEG Ratio 0.18 Undervalued

Dividend Yield 0.00% Growth-focused

Debt to Equity 0.05 Excellent

RSI / MACD 37.6 / -0.51 Oversold / Bearish

PAT Trend +320% QoQ Explosive growth

Suzlon is a high-risk, high-reward play in the renewable energy space. Ideal for long-term investors who believe in India’s clean energy transition.

Would you like a comparison with Inox Wind or NTPC Green to see how Suzlon stacks up in the wind energy segment?

1

www.onebythefive.com

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Business Today | MSN

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www.samco.in

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in.tradingview.com

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fincopanda.com

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