Suzlon Energy Posts 96% Profit Surge in Q2, Secures Record-High 5.1 GW Order Book Amid Strong Institutional Backing

Suzlon Energy has shown impressive growth both in its financial performance and stock price, backed by strong order inflows and increasing institutional interest. Here’s a summary of its recent updates:

1. Financial Performance for Q2 FY25: Suzlon’s net profit for the quarter surged by 96% to ₹201 crore, up from ₹102 crore in the same period last year. Revenue from operations also saw a notable increase, rising 48% to ₹2,093 crore, compared to ₹1,417 crore in the previous year’s quarter. This reflects Suzlon’s strengthened operational capabilities and growing market demand.
2. Order Book: The company secured a robust order inflow of 1.57 GW in the September quarter, taking its order book to a record-high 5.1 GW. This extensive backlog positions Suzlon well for steady revenue generation over the next 18 to 24 months, ensuring a strong growth pipeline.
3. Institutional Investment: Suzlon is seeing a steady increase in institutional interest. Foreign Institutional Investors (FIIs) increased their holdings from 21.53% to 23.72%, while Mutual Funds raised their stakes from 3.82% to 4.14% in the September 2024 quarter. Additionally, the number of FII investors rose from 652 to 720, and mutual fund schemes investing in Suzlon grew from 23 to 28 during the quarter, signaling confidence in Suzlon’s growth potential.
4. Stock Performance: Suzlon’s stock has seen remarkable gains. Over the past six months, shares have risen by 64%, climbed 77% in 2024, and increased 117% over the past year. Its five-year performance is particularly impressive, with gains of 2,647%. The stock’s 52-week high stands at ₹86.04, with a low of ₹31.35, showing significant upward momentum.
5. Analyst Recommendations: Analysts offer mixed guidance on Suzlon. Nuvama maintained a “Hold” rating with a target price of ₹67, citing that current prices already reflect anticipated gains in order inflows and profits. They adjusted projections for FY25-27 to account for the recent Renom acquisition and ESOP-related costs, resulting in a target based on a 35x multiple of FY27E earnings. On the other hand, JM Financial has an optimistic view, raising its target price to ₹81, reflecting the potential for further stock appreciation.
6. Outlook: Suzlon Energy, India’s leading wind energy service provider, has a substantial installed capacity of 14.7 GW within the country and around 6 GW internationally. With a 29-year track record and a workforce of over 6,200, Suzlon is positioned for long-term growth in renewable energy.

In summary, Suzlon Energy has shown exceptional growth in both operational and financial metrics, driven by a strong order pipeline and rising institutional interest. While some analysts recommend holding the stock at current valuations, others see room for continued appreciation. Suzlon’s performance suggests it’s well-placed for sustained growth, though current prices may already reflect much of its recent progress.

Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before making investment decisions. Investments are subject to market risks.