Suzlon share price target 2024, 2025, 2026, 2027, 2030 prediction: Buy or Sell?

This post was most recently updated on December 29th, 2023

Suzlon Energy Ltd. is one of the leading renewable energy solutions providers in India, specializing in wind energy. The company has a significant presence in the domestic and international markets, with a market share of around 33% in India and operations in over 18 countries. Suzlon has been in the business for over 25 years and has developed a wide range of wind turbine models, catering to various customer segments and project sizes. In this article, we will look at Suzlon share price target 2024, 2025, 2026, 2027, 2030.

In this blog post, we will analyze the performance, prospects, and challenges of Suzlon Stock, using various sources of information and data.

Consider reading: Adani Power Share Price Target

Suzlon share price target 2024, 2025, 2026, 2027, 2030

Suzlon share price target 2024

Suzlon share price target 2024: In 2024, the Suzlon Share Price Target had a range from a minimum of ₹45 to a maximum of ₹55, with an average target of ₹50.

Suzlon share price target 2025

Suzlon share price target 2025: For 2025, the Suzlon Share Price Target ranged from a minimum of ₹56 to a maximum of ₹69, with an average target of ₹63.

Suzlon share price target 2026

Suzlon share price target 2026: In 2026, the Suzlon Share Price Target varied between ₹70 as the minimum and ₹86 as the maximum, with an average target of ₹78.

Suzlon share price target 2030

Suzlon share price target 2030: For the year 2030, the Suzlon Share Price Target encompassed a minimum target of ₹172, a maximum target of ₹210, and an average target of ₹191.

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Suzlon share price today live chart and history

Competitors of Suzlon Stock

Suzlon Energy Limited, a key player in the wind energy sector, navigates a competitive landscape that includes both national and international rivals. This segment provides a detailed comparison of Suzlon with its major competitors, highlighting their market positions and key financial metrics.

1. Vestas Wind Systems: Headquartered in Denmark, Vestas holds the title of the world’s largest wind turbine manufacturer. As of 2022, it boasts a global market share of 16.7% and a significant 18.5% share in the Indian market. Vestas operates in over 80 countries with an installed capacity exceeding 136 GW globally. Financially, Vestas’ shares are priced at DKK 1,387.50, contributing to a market capitalization of DKK 281.51 billion as of December 6, 2023.

2. Inox Wind: A major Indian contender, Inox Wind specializes in manufacturing wind turbine generators. With a domestic market share of 14.8%, Inox has an annual production capacity of 1.6 GW and has installed more than 2.8 GW in India. Its stock is valued at ₹113.95 per share, leading to a market cap of ₹23.62 billion as of the same date.

3. ReGen Powertech: Also based in India, ReGen Powertech is another prominent manufacturer in this sector. Holding a 10.4% share of the domestic market, ReGen has an annual manufacturing capacity of 1.5 GW and has installed over 2.5 GW in India. As a privately held entity, ReGen does not have publicly traded stock or market capitalization.

4. ENERCON: This German powerhouse has a global footprint with a presence in over 45 countries and an impressive installation of over 53 GW worldwide. ENERCON’s global market share stands at 10.1%, with a 9.8% stake in the Indian market. Similar to ReGen, ENERCON is privately held and does not have a listed stock price or market cap.

The table below encapsulates the comparative data of Suzlon and its competitors, providing a clear overview of each company’s market position and financial health:

Consider reading: Adani Green Energy Share Price Target

Suzlon Shares: Buy or Sell?

Growth Opportunity for Suzlon Stock

Suzlon Energy Limited, a pivotal force in the renewable energy arena, especially in wind energy, is on the brink of a significant growth phase. The escalating global demand for renewable energy, driven by a collective shift towards sustainable and clean energy sources, positions Suzlon at the forefront of a promising market expansion.

Global Wind Energy Growth Prospects: The Global Wind Energy Council (GWEC) forecasts a robust growth in global wind power capacity, projected to increase from 743 GW in 2020 to 1,115 GW by 2025, marking an impressive 8.5% compound annual growth rate (CAGR). This upward trajectory is expected to continue, with a predicted capacity of 2,110 GW by 2030, escalating at a CAGR of 10.4%. This global trend underscores a burgeoning market for wind energy solutions, a sector where Suzlon is poised to play a key role.

India’s Renewable Energy Ambitions: India’s commitment to renewable energy, particularly wind power, presents a lucrative opportunity for Suzlon. The nation aims to achieve 175 GW of renewable energy capacity by 2022, with wind energy contributing 60 GW. As of September 2021, India’s wind power capacity stood at 39.2 GW, comprising 10.3% of the total power capacity and nearly half (49.6%) of its renewable energy capacity. Furthermore, the Ministry of New and Renewable Energy (MNRE) estimates India’s potential wind power capacity at an astounding 302 GW at 100 meters hub height, indicating a vast, yet-to-be-tapped potential in the wind energy sector.

Suzlon’s Strategic Positioning: Suzlon’s established track record, diverse product offerings, substantial order book, and an extensive project pipeline uniquely position the company to harness these growth opportunities. Suzlon’s commitment to innovation and technological advancements aims to enhance product efficiency and reduce energy costs, aligning with the growing global and domestic demand for sustainable energy solutions.

Consider reading: Best Renewable Energy Stocks in India

Strengths of Suzlon Stock

Suzlon Energy Limited stands as a formidable player in the wind energy sector, leveraging several key strengths that provide it with a competitive advantage. Here’s an analysis of Suzlon’s core competencies:

1. Dominant Market Position: Suzlon has cemented its status as a leader in the Indian wind energy market, boasting a significant 33% market share in 2022. The company’s robust customer portfolio includes top-tier independent power producers, utilities, corporates, and public sector entities. Beyond its domestic dominance, Suzlon has expanded its footprint globally, with operations in over 18 countries including the USA, Brazil, Australia, South Africa, and China, underscoring its international influence.

2. Diverse Product Offerings: Suzlon’s diverse product range, featuring wind turbine models with capacities ranging from 600 kW to 2.1 MW, showcases the company’s adaptability to varying market needs. The introduction of advanced models like the S128 and S120 wind turbine generators, known for their enhanced efficiency and cost-effectiveness, highlights Suzlon’s commitment to innovation. The company’s comprehensive services, encompassing project development, engineering, procurement, construction, and maintenance, further bolster its market standing.

3. Emphasis on Innovation and Technology: Suzlon’s dedication to innovation is evident in its state-of-the-art research and development center, staffed with over 500 engineers and scientists. The company’s intellectual property portfolio, with over 400 patents, and numerous accolades in technological excellence, underscore its commitment to advancing wind energy technology. Moreover, Suzlon’s adoption of digital transformation strategies, including cloud computing, big data analytics, AI, and IoT, positions it at the forefront of operational efficiency and customer satisfaction.

4. Strong Financial Health: Suzlon’s strategic financial management has led to a significant reduction in its debt, decreasing by 59.62% to ₹25.23 billion in September 2023 from ₹62.54 billion the previous year. This fiscal discipline is paired with an impressive 78.11% year-on-year increase in net profit, standing at ₹1.02 billion for the quarter ending September 2023. Suzlon’s enhanced cash flow and liquidity, evidenced by a 20.33% year-on-year increase in cash and short-term investments to ₹2.11 billion, fortify its financial robustness.

Weakness of Suzlon Stock

Suzlon Energy Limited, while a significant player in the renewable energy sector, is not without its challenges. Understanding these weaknesses is crucial for a balanced perspective on the company’s performance and potential risks. Here are the key weaknesses impacting Suzlon Stock:

1. Market Volatility and High Valuation: Suzlon’s stock is characterized by high volatility, partly due to its sensitivity to various external factors such as market trends, policy shifts, regulatory changes, competitive dynamics, and environmental concerns. The stock’s beta value of 1.9 signals this high volatility. Additionally, Suzlon’s valuation metrics, with a price-to-earnings (PE) ratio of 83.26 and a price-to-book (PB) ratio of 29.88, stand significantly above the industry averages of 25.32 and 3.76, respectively. This disparity suggests that Suzlon’s stock might be overvalued, raising concerns about potential market corrections.

2. Lack of Dividend Payments and Subpar ROE: For investors seeking regular income through dividends, Suzlon may not be an attractive option, as the company has not declared dividends for the past five years. Furthermore, Suzlon’s return on equity (ROE) of 35.87% as of September 2023, which falls below the industry average of 41.12%, indicates that the company is not maximizing profit generation from its equity investments.

3. Operational and Financial Challenges: Suzlon faces numerous operational and financial hurdles, including potential project delays, cost overruns, technical issues, warranty claims, currency volatility, interest rate variations, and tax disputes. Notably, the company has been involved in several legal matters, such as arbitration with Edison Mission Energy, insolvency proceedings with Axis Bank, and a tax evasion case with the Income Tax Department. These issues could negatively impact Suzlon’s reputation, cash flow, and overall profitability.

Consider reading: BCG Share Price Target

SWOT Analysis of Suzlon Stock

The SWOT analysis of Suzlon Energy Limited provides a comprehensive overview of the company’s internal strengths and weaknesses, along with external opportunities and threats that could impact its performance in the renewable energy sector. This strategic framework aids in understanding Suzlon’s position and potential trajectory in the market.

SWOT Matrix for Suzlon Energy Limited:

Suzlon Stock Company Financials

The financial performance of Suzlon Energy Limited over the past eleven years (2012-2023) presents a varied landscape with significant fluctuations in sales, operating profit, and net profit.

Note: OPM % stands for Operating Profit Margin Percentage, PBT for Profit Before Tax, EPS for Earnings Per Share, and TTM for Trailing Twelve Months.

Let’s break down the key financial aspects:

1. Sales Revenue:
   • Trend: There was a noticeable decline in sales from 2012 to 2016, followed by a period of inconsistent recovery through to 2023.
   • Analysis: The decline in sales during the early years could be attributed to market challenges and operational issues. The subsequent recovery indicates a strategic realignment and possibly better market conditions.
2. Operating Profit and Margins:
   • Trend: Operating profit fluctuated significantly, with substantial losses in 2013, 2014, and 2015. However, a turnaround is observed from 2017 onwards, with positive and growing operating margins.
   • Analysis: The negative operating margins in the early years indicate operational inefficiencies or high costs. The improvement post-2016 suggests effective cost management and operational optimization.
3. Other Income:
   • Trend: Other income varied significantly, with a notable increase in 2016.
   • Analysis: The high other income in 2016 could be due to non-operational income sources such as asset sales, investments, or one-off gains.
4. Interest Expense:
   • Trend: High-interest expenses were sustained until 2015, post which there has been a consistent decrease.
   • Analysis: The reducing interest expense is indicative of effective debt management and possibly debt reduction.
5. Depreciation:
   • Trend: Depreciation charges were relatively stable, with minor fluctuations.
   • Analysis: This suggests a consistent approach to capital asset management.
6. Profit Before Tax (PBT) and Net Profit:
   • Trend: Suzlon experienced significant losses before tax from 2013 to 2015, with a notable turnaround from 2016 onwards, culminating in substantial profitability in 2023.
   • Analysis: The turnaround to profitability indicates successful strategic and operational restructuring.
7. Taxation:
   • Trend: The tax percentage shows erratic figures, with an extraordinary spike in 2022.
   • Analysis: This could be due to deferred tax adjustments or changes in tax liabilities.
8. Earnings Per Share (EPS):
   • Trend: Negative EPS was observed during the loss-making years, turning positive post-2016.
   • Analysis: This mirrors the company’s return to profitability.
9. Dividend Payout:
   • Trend: There was no dividend payout throughout the period.
   • Analysis: This suggests that the company prioritized reinvesting earnings into operations and debt reduction.

Suzlon Energy Limited’s financial journey from 2012 to 2023 has been marked by significant challenges, including operational inefficiencies and high debt, which were particularly evident in the early years. The turnaround in the company’s financial health post-2016, evidenced by increased profitability and reduced debt, indicates effective management strategies and a favorable shift in operational dynamics.

However, the absence of dividend payouts and high volatility in certain years point to ongoing challenges in achieving consistent financial stability. The company’s future financial performance will likely depend on its ability to maintain operational efficiency, manage debts, and capitalize on market opportunities in the renewable energy sector.

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Risks in the Future for Suzlon Stock

Suzlon Energy Limited, like any company in the dynamic wind energy sector, faces several risks and challenges that could impact its future growth and profitability. Here’s an analysis of the major risks:

1. Intense Competition:
   • Challenge: Suzlon competes with major domestic and international companies like Vestas, Inox Wind, ReGen Powertech, and ENERCON.
   • Impact: These competitors may surpass Suzlon in terms of product quality, pricing, technological innovation, and market penetration, potentially eroding Suzlon’s market share.
   • Mitigation: To remain competitive, Suzlon must continually innovate, enhance product quality, and optimize pricing strategies.
2. Policy and Regulatory Uncertainties:
   • Challenge: The renewable energy sector is heavily influenced by government policies and regulations at both central and state levels.
   • Impact: Changes in policies, such as tariff adjustments, grid connectivity rules, or land acquisition regulations, can significantly affect the feasibility and profitability of Suzlon’s projects.
   • Mitigation: Suzlon needs to engage actively in policy advocacy and maintain a flexible business model that can adapt to regulatory changes.
3. Environmental and Social Issues:
   • Challenge: Issues like climate change, natural disasters, wildlife conservation, land rights disputes, and local protests can disrupt Suzlon’s operations.
   • Impact: Such challenges can lead to project delays, increased costs, and negative public perception, potentially harming Suzlon’s reputation and financial performance.
   • Mitigation: Adopting sustainable practices, engaging in transparent dialogue with local communities, and investing in risk management strategies can help mitigate these risks.

Suzlon Energy Limited’s path to sustained growth and profitability is laden with challenges that require strategic focus, adaptive operations, and proactive risk management. The company’s ability to navigate these challenges effectively will be crucial in maintaining its competitive edge in the renewable energy market.

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Key things to watch out for Suzlon Stock

For investors considering Suzlon Energy Limited’s stock, a comprehensive analysis of various factors is essential to assess its future performance and valuation. Here are the critical aspects to keep an eye on:

1. Financial Health and Performance:
   • Indicators: Track the company’s quarterly and annual financial reports, focusing on revenue, profitability, order book size, project execution efficiency, and cash flow status.
   • Significance: These metrics provide insights into the company’s operational effectiveness and financial stability.
2. Market and Industry Dynamics:
   • Indicators: Observe trends in wind energy demand and supply, tariff rates, bidding processes, grid connectivity challenges, and land acquisition policies.
   • Significance: Understanding these trends helps gauge the potential market size and growth opportunities for Suzlon.
3. Government Policies and Regulatory Environment:
   • Indicators: Stay updated on renewable energy targets, tax incentives, subsidies, and environmental regulations.
   • Significance: Government policies can significantly impact Suzlon’s business operations and profitability.
4. Innovation and Technological Advancements:
   • Indicators: Monitor new product launches, digital transformation initiatives, and patent filings.
   • Significance: Technological innovation is key to maintaining competitive advantage and meeting evolving market demands.
5. Competitive Landscape:
   • Indicators: Analyze market share, product differentiation, pricing strategies, and customer satisfaction metrics of Suzlon and its competitors.
   • Significance: This analysis helps understand Suzlon’s position in the market relative to its competitors.
6. Legal and Reputational Factors:
   • Indicators: Pay attention to ongoing legal cases and any issues that might affect the company’s reputation.
   • Significance: Legal and reputational risks can have a direct impact on investor confidence and the company’s public image.

Investing in Suzlon Energy Limited requires a balanced consideration of these multifaceted factors. Given its position in the renewable energy sector, alongside the inherent volatility and the range of external influences, investors should adopt a vigilant and informed approach. Monitoring these key indicators will provide a clearer picture of Suzlon’s potential for growth, risks, and overall investment viability.

Final Thoughts on Suzlon share price target 2024, 2025, 2026, 2027, 2030

Suzlon Energy Limited, a key player in the wind energy sector, has demonstrated significant strides in market leadership, product diversification, and project execution. The company’s stock has witnessed an impressive recovery, soaring over 70% from ₹22.80 in December 2022 to ₹38.95 in December 2023. This uptrend has been reinforced by growing interest from institutional investors, such as BlackRock, showcasing enhanced investor confidence.

Despite these strengths, Suzlon’s stock is characterized by high volatility and a valuation that appears overstretched, with a beta of 1.9 and ratios like PE at 83.26 and PB at 29.88. The absence of dividend payouts in the last five years may detract income-focused investors. Moreover, Suzlon faces significant challenges including intense competition, fluctuating policy and regulatory landscapes, and environmental and social concerns. These factors collectively contribute to an uncertain operational environment.

Prospective investors in Suzlon’s stock should be vigilant about various determinants that could influence future performance and valuation. These include the company’s growth trajectory, industry trends, governmental policies, technological advancements, competitive dynamics, and potential legal or reputational risks.

In essence, Suzlon’s stock presents a blend of opportunities and challenges. It appeals to investors who possess a long-term perspective, are comfortable with high-risk investments, and are adept at navigating complex market dynamics. Suzlon’s stock, therefore, is suitable for those who are bold and visionary, willing to actively monitor and respond to the evolving landscape of the renewable energy sector.

FAQs on Suzlon share price target 2024, 2025, 2026, 2027, 2030

What is Suzlon share price target 2024?

In 2024, our thorough research and analysis indicated that the Suzlon Share Price Target exhibited a range, spanning from a minimum of ₹45 to a maximum of ₹55, and settling at an average target of ₹50.

What is Suzlon share price target 2025?

In 2025, our comprehensive research and analysis revealed that the Suzlon Share Price Target displayed a range, extending from a minimum of ₹56 to a maximum of ₹69, while maintaining an average target of ₹63.

What is Suzlon share price target 2026?

During the year 2026, our diligent research and analysis indicated that the Suzlon Share Price Target exhibited fluctuations, with a minimum value of ₹70, reaching a maximum of ₹86, and maintaining an average target of ₹78.

What is Suzlon share price target 2030?

In the year 2030, our extensive research and analysis revealed that the Suzlon Share Price Target encompassed a minimum target of ₹172, reached a maximum target of ₹210, and settled at an average target of ₹191.