Suzlon Energy’s share price surged over 13% following its stellar Q4 results
Suzlon Energy’s Stock Surge: What’s Driving the Rally?
Suzlon Energy, a leading renewable energy solutions provider, has witnessed a remarkable 13% surge in its share price following its Q4 FY25 earnings report. Investors are cheering the company’s 365% year-on-year profit growth, which has propelled Suzlon’s stock to a six-month high.
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Key Highlights from Suzlon’s Q4 FY25 Report
- Net Profit: ₹1,181 crore, up from ₹254 crore in Q4 FY24.
- Revenue Growth: ₹3,774 crore, marking a 73% increase year-on-year.
- EBITDA Margin: Expanded to 18.3%, reflecting operational efficiency.
- Order Book: A record 5.6 GW, with strong execution in wind energy projects.
Suzlon’s wind turbine generator (WTG) business contributed 78% of its revenue, while its operations and maintenance services (OMS) segment accounted for the rest. The company’s S144 platform has surpassed 5 GW in orders, reinforcing its dominance in India’s wind energy market.
Why Are Analysts Bullish on Suzlon?
Leading brokerage firms have raised their price targets for Suzlon Energy, citing its strong execution and revenue growth.
- Motilal Oswal: Maintains a ‘Buy’ rating with a target price of ₹83, expecting a 27% upside.
- Nuvama Institutional Equities: Projects 5-7% higher sales estimates for FY26 and FY27.
Suzlon’s capacity ramp-up to 4.5 GW and government focus on green energy are expected to drive further growth.
Challenges and Risks
Despite its strong performance, Suzlon faces some challenges:
- Low order inflow in Q4 FY25, with cancellations affecting short-term projections.
- Higher depreciation and interest costs due to acquisitions.
- Transmission and land challenges impacting installations.
However, analysts believe these hurdles are temporary, with Suzlon’s long-term growth trajectory intact.
Conclusion: Is Suzlon Energy a Smart Investment?
Suzlon Energy’s stellar Q4 results, record order book, and bullish analyst projections make it a compelling investment opportunity. With India’s renewable energy sector expanding, Suzlon is well-positioned to capitalize on future growth.
Investors should monitor order inflows, execution timelines, and policy developments to make informed decisions.
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