About Suzlon Energy
Suzlon Energy Limited is an Indian multinational renewable energy company headquartered in Pune, Maharashtra, India. The company is one of the largest wind turbine manufacturers in the world, with a market share of around 8% in 2019. Suzlon was founded in 1995 by Tulsi Tanti and has since become a major player in the wind energy sector, with operations in more than 19 countries across Asia, Australia, Europe, and North and South America. The company designs, manufactures, installs, and services wind turbine generators (WTGs) for the global market. It also provides turnkey solutions for wind energy projects, including site development, financing, and project management.
Suzlon Energy Share Price Target 2023: Technical Analysis
From lower level we have seen a good move in Suzlon share price, on chart Suzlon share is continuously taking the support of trendline, After a recent swing of Rs 12, we have seen a correction in the share price around Rs6, now the share is trading near its resistance that is 11 to 12, above the level of 12 we can see some up move in Suzlon share price.
SUZLON ENERGY Share Price Target 2023
| Year | SUZLON ENERGY Share Price in 2023 |
| 2023 | ₹12 to ₹15 |
History of Suzlon Energy
Suzlon Energy Limited was founded in 1995 by Tulsi Tanti, a textile entrepreneur from Gujarat, India. Tanti started the company with the goal of manufacturing wind turbines and selling clean energy to the Indian market. In the early years of the company, Suzlon focused on developing small, low-cost wind turbines for use in rural areas of India.
Over time, Suzlon expanded its operations and began exporting its wind turbines to other countries. In 2001, the company established a manufacturing facility in China, and in 2002, it opened a facility in the Netherlands. In 2005, Suzlon became the first Indian company to list on the New York Stock Exchange (NYSE).
In the following years, Suzlon continued to grow and expand, establishing a presence in countries around the world. In 2009, the company acquired the German wind turbine manufacturer REpower Systems, making it one of the largest wind turbine manufacturers in the world.
However, in recent years, Suzlon has faced financial challenges and struggled to meet its debt obligations. In 2018, the company entered into a debt restructuring plan with its creditors. Despite these challenges, Suzlon remains a major player in the global renewable energy market.
Company Overview
| Company Name | Suzlon Energy |
| Market Cap (Cr.) | ₹ 10,486.08 |
| High / Low | ₹ 12.19/5.43 |
| Stock P/E | 7.35 |
| Book Value | ₹ -0.25 |
| P/B (Price to Book Value) | 26.83 |
| Face Value | ₹ 2.00 |
| ROCE | % |
| ROE | – |
| Dividend Yield | 0 |
Fundamentals of Suzlon Energy
- 15 years ago on 2008 Suzlon Energy share was trading around Rs 350, from there due to bad financial condition we see a continuous fall in suzlon share price, and currently the price is around Rs 10. The share price has also touched the lower level of Rs 2.
- Over the year suzlon share have erode a large wealth of their investors like Rcom and Jp Associates. Therefore we will not suggest you to invest in these types of shares but as a risky trader or investor its your choice.
- So let’s understand what changes happened in Suzon Energy fundamentals:
- On March 2020, company’s reserves was negative which was Rs -12,075 crore, on march 2022 Rs – 5612 crore, and now in sep 2022 data shows it is Rs -2,328 crore, means they are improving from bad times.
- On March 2020 they have highest debt around Rs 13,210 crore, on march 2022 it was Rs 4222 crore now they have reduced a huge part of their debt now on sep 2022 was only Rs 3,201 crore.
- On March 2020 company’s operating profit was Rs -856 cr and now in march 2022 company has delivered Rs 900 cr of operating profit (EBITDA).
- From last two quarters their earning was positive in June 2022 Rs 214 cr and sep 2022 Rs 170 cr respectively, and it is expected the coming 3rd quarter would be also profitable.
- From last few quarters their sales and operating profit has increased.
- Two years ago on march 2020 suzlon share price touched the lower level of Rs 1.55 and on Dec 2022 share touched the level of Rs 12.15, (8 times from its lower level).
- From last two financial year their net cash flow has increased, on march 2021 it was Rs 180 crore and on March 2022 it was Rs 238 crore.
Pros:
- Company has reduced debt.
- Company is expected to give good quarter
- Debtor days have improved from 125 to 76.4 days.
Cons:
- Company has low interest coverage ratio.
- Promoter holding has decreased over last quarter: -0.42%
- The company has delivered a poor sales growth of -12.3% over past five years.
- Promoter holding is low: 14.5%
- Promoters have pledged 80.8% of their holding.
- Earnings include an other income of Rs.2,486 Cr.
- Company’s cost of borrowing seems high
- Working capital days have increased from -45.8 days to 64.6 days
Suzlon Energy Share Price Target 2024-2025
Suzlon Energy Share Price Target 2024
| Year | Suzlon Energy Share Price in 2024 |
| 2024 | ₹18 to ₹25 |
Suzlon Energy Share Price Target 2025
| Year | Suzlon Energy Share Price in 2025 |
| 2025 | ₹33 to ₹45 |
Operations of Suzlon Energy
Suzlon Energy Limited is a global renewable energy company that designs, manufactures, installs, and services wind turbine generators (WTGs) for the global market. The company also provides turnkey solutions for wind energy projects, including site development, financing, and project management.
Suzlon has manufacturing facilities in India, China, the Netherlands, and the United States, and it has a presence in more than 19 countries around the world. In addition to its core wind energy business, Suzlon also has a presence in the solar energy sector and provides a range of services including operation and maintenance, asset management, and energy storage solutions.
Suzlon’s wind turbine generators are available in a range of sizes, with rotor diameters ranging from 79 meters to 126 meters and rated capacities ranging from 1.5 MW to 6.15 MW. The company’s wind turbines are designed for both onshore and offshore use and are suitable for a variety of wind conditions.
Suzlon’s wind energy projects include both utility-scale projects, which provide power to the grid, and small-scale projects for commercial and industrial customers. The company has developed and installed wind energy projects in countries around the world, including India, China, the United States, Australia, and several countries in Europe.
Suzlon Energy Shareholding Patterns:
In suzlon energy promoter has only 14.50% stake, where as FIIS have 6.94% and DIIS have 5.81% stake and the remaining maximum 72.74% stake holds Retail people.
Suzlon Energy Share Price Target 2030:
| Year | SUZLON ENERGY Share Price in 2030 |
| 2030 | ₹100 to ₹130 |
Conclusion:
Overall Suzlon energy is trying to recover from its bad financial condition, and from few quarters, computer have improved their financial conditions, still they have long run. In coming years as we are seeing the renewable energy is the theme and suzon is one who is in it. We hope in futures we could see Suzlon in good condition.
Source: Suzlon Energy Annual Report & Google
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
