The stock market can be a rollercoaster ride, and Suzlon Energy is no exception. In 2025, the company’s shares have seen a decline of 16% so far. However, despite this recent downturn, Suzlon has proven to be a multibagger in the long term, boasting an impressive 33% return over the past year. Once priced at just Rs 1.90 in March 2020, the stock has maintained values above Rs 50 in the near term. This raises the question: is it still a good time to invest in Suzlon?
Valuation Insights: Comparing Earnings Per Share
Analysts highlight that Suzlon Energy has a strong competitive edge in terms of earnings per share (EPS) compared to its industry peers. Forecasts suggest an EPS growth rate of 63% from FY24 to FY27, significantly outpacing other players like ABB (23%), Siemens (20%), and Thermax (17%). Notably, when compared to global competitors like SANY, which has a compound annual EPS growth of 26%, Suzlon appears favorably valued.
Target Price Projections by Motilal Oswal
Brokerage firm Motilal Oswal has set a target price of Rs 70 per share for Suzlon, indicating an expected increase of 21% from its current level. While valuations in the capital goods sector have declined, Suzlon’s strong earnings, robust growth trajectory, substantial order book, and positive industry outlook contribute to a favorable investment case.
JM Financial Services Weighs In
JM Financial Institutional Securities maintains a “Buy” recommendation for Suzlon, with a target price of Rs 71, suggesting a 24% upside potential. The firm points to the company’s record-high order book and ongoing initiatives aimed at expanding production capabilities as key positive factors. According to their report, the expansion includes converting existing warehouse space into a new assembly hub, which is expected to enhance operational efficiency.
Earnings Perspective: Favorable PEG Ratio
On the earnings front, Suzlon seems to be trading at a competitive price-to-earnings growth (PEG) ratio of 0.6 for FY26, which is below the ratios of domestic peers like Thermax (2.5x), ABB India (6x), and CG Power (1.9x). A PEG ratio below 1.0 often indicates that a stock may be undervalued, making it an attractive option for investors looking for growth.
The Clean Energy Sector’s Growth
Suzlon has made significant strides in the clean energy sector, holding a 31% market share of India’s total wind capacity, which stands at 48.2 GW as of Q3 FY25. The Ministry of New and Renewable Energy reports that India achieved 214 GW of installed green energy capacity by the end of 2024, setting the nation on a path to reach its ambitious goal of 500 GW from non-fossil fuel sources by 2030.
Increased Retail Investment in Suzlon
Recent data from the BSE shows that retail ownership of Suzlon Energy has climbed to 25.12% in Q4 FY25, up from 24.49% in Q3 FY25. This increase reflects growing optimism among retail investors regarding the company’s growth potential.
Recent Stock Performance
Over the last five trading days, Suzlon Energy’s stock has appreciated by nearly 6%. Despite a modest 0.2% return over the past month, the stock has faced challenges, erasing about 24% of investor wealth over the previous six months. Nevertheless, it has demonstrated resilience with a 34% increase over the past year.
As investors ponder whether to buy into Suzlon Energy, the blend of strong fundamentals and an optimistic industry outlook makes it a compelling candidate for those looking to capitalize on growth in the renewable energy sector.
