Suzlon Energy Surges 3% After Securing 204-MW Order from Jindal Green Wind
Suzlon Energy Surges : Suzlon Energy Ltd, a leading renewable energy solutions provider, saw its stock price rise by 3.30% after securing a major 204-MW wind energy order from Jindal Green Wind 1 Pvt. Ltd., a subsidiary of Jindal Renewables. This new order strengthens Suzlon’s position as a key player in India’s renewable energy sector and aligns with the country’s push towards sustainable energy solutions.
Stock Price Movement
With a market capitalization of ₹69,518 crore, Suzlon Energy’s shares were trading at ₹51.4 apiece, up from the previous closing price of ₹50. This upward movement highlights investor confidence following the company’s latest deal.
Why is Suzlon Energy’s Stock Rising?
Suzlon’s latest contract involves supplying 65 S144 wind turbine generators (WTGs) of 3.15 MW each, featuring Hybrid Lattice Towers (HLT). These turbines will be used for captive consumption in Jindal Steel’s plants in Chhattisgarh and Odisha, reinforcing the role of wind power in industrial operations.
This deal also marks Suzlon’s largest-ever Commercial & Industrial (C&I) order, pushing its total order book to 5.9 GW—the highest in its history. The company has previously secured 702.45 MW of wind energy orders from Jindal Steel, bringing the combined project capacity to 907.20 MW. Currently, C&I customers account for 59% of Suzlon’s total orders.
Brokerage Recommendations and Market Outlook
Leading brokerage firm Investec has issued a ‘Buy’ rating on Suzlon Energy with a target price of ₹70 per share, indicating a potential 37% upside from its current price.
Why is Investec Bullish on Suzlon?
- Strong Order Book: 5.5 GW of secured orders
- Net-Cash Status: Improved financials and reduced debt
- Optimized Supply Chain: Enhancing project execution efficiency
- High Growth Potential: Revenue and PAT expected to grow at 55% and 66% CAGR, respectively, through FY24-FY27
- Improved Return on Equity (RoE): Projected to hit 32%
Recent Orders and Execution Strength
Suzlon continues to expand its footprint in India’s renewable energy space. In a recent development, the company secured a 201.6 MW repeat order from Oyster Renewable Energy, increasing their total partnership to 283.5 MW in Madhya Pradesh.
This project, expected to be completed within nine months, involves the deployment of 64 advanced S144 wind turbine generators. This order reaffirms the rising demand for wind energy among industrial consumers.
Manufacturing and Execution Capabilities
Suzlon has expanded its manufacturing capacity to over 4.5 GW with upgraded facilities in Pondicherry, Madhya Pradesh, and Rajasthan. The company has already achieved a record 447 MW delivery in Q3, reflecting a 163% year-over-year growth.
Key Highlights:
- 977 MW delivered in nine months, exceeding FY24’s total of 710 MW
- 2,277 MW commissioned industry-wide, though transmission delays persist
- 80% of Suzlon’s order book is non-EPC, focusing on better execution
Financial Ratios and Company Profile
| Metric | Value |
|---|---|
| Market Cap | ₹68,841 Cr. |
| Current Price | ₹50.8 |
| High / Low | ₹86.0 / 35.5 |
| Stock P/E | 58.9 |
| Book Value | ₹3.32 |
| ROCE (Return on Capital Employed) | 24.9% |
| ROE (Return on Equity) | 28.8% |
| Debt to Equity | 0.06 |
| Promoter Holding | 13.2% |
| Industry P/E | 44.8 |
| Intrinsic Value | ₹6.28 |
| EPS (Earnings Per Share) | ₹0.85 |
| PEG Ratio | 2.98 |
| DMA 200 | ₹58.4 |
| Free Cash Flow (3 Yrs) | ₹1,556 Cr. |
| Debt | ₹277 Cr. |
Strategic Roadmap: Growth and Sustainability
Suzlon continues to be a dominant force in the renewable energy sector, with a market leadership position of 31% in India. The company’s 20.8 GW of installed wind energy capacity worldwide underscores its global presence.
Additionally, Suzlon is aligned with the Net Zero by 2050 goal and is actively pursuing advanced project development contracts totaling 1,100 MW. The company is also exploring export opportunities to diversify its revenue streams.
Conclusion
Suzlon Energy’s latest 204-MW order from Jindal Green Wind has further solidified its market presence and growth trajectory. With strong financials, an expanding order book, and increasing demand for renewable energy, the company is well-positioned for long-term success. Investors looking for exposure to India’s clean energy transition may find Suzlon a compelling opportunity, especially with a potential 37% upside as per brokerage estimates.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.