Suzlon shares slip 30% from 52-week high despite upbeat Q2 performance

Suzlon Energy stock gains momentum; strong Q2 results fuel optimism

Shares of Suzlon Energy soared over five per cent on Tuesday, hitting the upper circuit and closing at Rs 62.22. Despite being nearly 30 per cent below its 52-week high of Rs 86.04, analysts view this dip as a strategic entry point for long-term investors, given Suzlon's robust financial performance and growth outlook.

Q2 FY25: Record-breaking performance

Suzlon reported a remarkable second quarter for FY25, with consolidated revenues surging 48 per cent year-on-year (YoY). The company delivered 256 MW of wind turbine generators (WTGs) during the quarter, reflecting a staggering 94 per cent YoY growth, marking its best second-quarter delivery in seven years.

• WTG revenues grew 72 percent YoY to Rs 1,507 crore.
• Operations and Maintenance Services (OMS) revenues increased 18 per cent YoY to Rs 565.5 crore.
• EBITDA rose by 31 per cent YoY to Rs 294 crore.
• Adjusted PAT climbed to Rs 201 crore, a 46 per cent YoY improvement.

Balance sheet resilience

Suzlon's balance sheet remains strong, with net cash of Rs 1,277 crore following the consolidation of Renom Energy, its service business subsidiary.

Analyst recommendations

Geojit Financial Services Limited has pegged Suzlon’s stock value at Rs 68, citing:

• An anticipated 67 percent CAGR in WTG deliveries between FY24 and FY27.
• Projected 61 per cent CAGR in earnings per share (EPS) during the same period.
• Expected return on equity (ROE) of 25 per cent by FY27.

Investment outlook

With a strong operational performance and positive growth indicators, Suzlon Energy is positioned as a promising long-term investment in the renewable energy sector. Market experts recommend the current dip as an opportunity for accumulation, given the company’s solid financials and ambitious growth trajectory.