Shares of wind energy solutions provider Suzlon Energy Ltd are hitting an upper circuit of 5% for the second consecutive day.
With Thursday’s surge, the stock has gained 10% in the last two trading sessions. The move has also taken the company’s market capitalisation to over ₹75,590 crore.
The two-day surge in Suzlon shares has pushed its Relative Strength Index (RSI) to 37 on the charts, which is close to ‘oversold’ levels. An RSI reading below 30 indicates that the stock is ‘oversold’.
Of the six analysts tracking Suzlon Energy, five now have a ‘buy’ rating on the stock and one has a ‘sell’ rating. Brokerage firm Nuvama has upgraded the stock to ‘Buy’ following its results, and has a price target of ₹60 on the stock. JM Financial has a price target of ₹80 on the counter.
Suzlon reported its third quarter results on Tuesday, which saw its revenue and net profit grow by 90% compared to the same quarter last year. EBITDA margins also saw expansion.
The company’s order book is at an all-time high of 5.5 GW, which Modi expects to execute in the next 18 months.
Several large orders from NTPC, Torrent Power and Jindal Renewables have secured land and RoW, providing better visibility for execution, JM Financial said in its note.
With strong order book, enhanced manufacturing capacity, enhanced operational readiness – supported by new leadership across business groups and supply chain improvements and adequate working capital, the brokerage believes the company is well-positioned for significant performance growth in the future.
Nevertheless, the pace of capacity addition at the country level will remain a key metric to monitor going forward.
Nuvama also said it remains long-term positive on Suzlon as it has revised its FY25-27 estimates to 1.5GW vs 1.44GW, factoring in better execution in FY25E (1.5GW vs 1.44GW), Renom acquisition and other charges. The brokerage has upgraded the stock on valuation comfort and price improvement.
In a post-earnings interaction with CNBC-TV18, Suzlon Group CFO Himanshu Modi said he expects the company to perform better than the 447 MW delivered during the December quarter. Deliveries for Suzlon were at a record high during the December quarter, marking a 167% growth from the same period last year. For the first nine months, Suzlon’s execution stood at 977 MW.
The company aims to spend between ₹300 crore and ₹400 crore as capital expenditure over the next two to three years. Modi also said the company is looking for select acquisitions, but there is nothing in the near future.
Responding to whether Suzlon will be able to achieve a profit between ₹2,000 crore and ₹2,500 crore in FY26, based on analysts’ reports, Modi said its prospects will depend on decisions taken by policymakers and implementation. Shares of Suzlon Energy are locked in a 5% upper circuit at ₹55.40. The stock has declined 15% so far in 2025.
