Suzlon Energy at 5% upper limit, zooms 16% in 3 days on Q3; analysts upbeat

Suzlon Energy share price: Renewable energy player Suzlon Energy share price rose for the third day in a row as the scrip was locked in 5 per cent upper circuit at Rs 58.15 per share, on Friday, January 31, 2025. Suzlon Energy shares have jumped 16 per cent over the last three trading sessions on the back of robust Q3FY25 results, which were supported by strong execution.

 

In Q3FY25, Suzlon Energy’s profit zoomed 90.6 per cent to Rs 386.9 crore, compared to Rs 203 crore in Q3FY24. Revenue surged 91.2 per cent Y-o-Y to Rs 2,968.8 crore, compared to Rs 1,552.9 crore in Q3FY24. Operationally, the company’s Ebitda more than doubled, up 105.6 per cent Y-o-Y, to Rs 493.5 crore, from Rs 240.1 crore in the same period last year. Additionally, the Ebitda margin expanded 110 bps Y-o-Y to 16.6 per cent in Q3FY25, compared to 15.5 per cent in Q3FY24.

 

JM Financial analysts said Suzlon Energy’s Q3 net revenue growth was driven by higher deliveries, which increased 163 per cent Y-o-Y. Analysts also noted that the company’s manufacturing capacity has now expanded to 4.5 GW, with several large orders from NTPC, Torrent Power, and Jindal Renewables, which have secured land and right-of-way (ROW), enhancing the visibility for future execution.

 

The firm’s strong order book, coupled with increased manufacturing capacity, improved operational readiness, and leadership changes in business groups, analysts believe, position Suzlon Energy well for future growth.   ALSO READ: Healthy Q3FY25 results fuel 14% rally in Waaree Energies share price today

 

However, analysts noted that the pace of capacity addition at the national level remains a key metric to monitor. Thus, JM Financial maintained their ‘Buy’ rating on Suzlon Energy with a target price of Rs 80, based on a 40x December 2026 earnings per share (EPS) multiple.

 

Meanwhile, Nuvama noted that Suzlon Energy delivered a strong Q3FY25 execution of 447 MW, surpassing their estimate of 360 MW. The company’s operating margin also exceeded expectations, due to higher wind turbine generator (WTG) mix, which led to better operating leverage. This resulted in a 22 per cent beat to Nuvama’s estimates and an 11 per cent beat to consensus forecasts, despite higher depreciation and interest costs following the Renom acquisition. 

 

The company’s order intake reached approximately 800 MW, boosting the order book to a record 5.5 GW, which is expected to be executable over the next 24 months, analysts highlighted.

 

With Suzlon Energy’s improved execution outlook for FY25E and long-term growth prospects, Nuvama has upgraded the stock to a ‘Buy’ rating from ‘Hold,’ revising its target price to Rs 60, based on a 35x FY27E WTG and F&F EPS, along with a discounted cash flow (DCF) for operations and maintenance.  ALSO READ: Here's why Biocon share price gained 4% despite fall in profits in Q3

 

Suzlon Energy is a company that provides renewable energy solutions, specialising in the manufacturing of wind turbine generators (WTGs) and various other components. Last checked, Suzlon Energy market capitalisation stood at Rs 79,360.67 crore, BSE data showed. The company falls under the BSE 100 category. 

 

At 11:22 AM, Suzlon Energy share price remained locked in the 5 per cent upper circuit at Rs 58.15. In comparison, BSE Sensex was trading 0.67 per cent higher at 77,275.98 levels.