Suzlon Energy share price up 13% over strong Q4 results: Should you buy?
Shares of Suzlon Energy rose sharply on Friday morning after the company posted strong earnings for the March quarter. The stock jumped as much as 13% in early trade, reaching an intraday high of Rs 74.30 on the BSE. By around 9:30 am, the shares were trading at Rs 72.84, up 11.34% from the previous close.This rise in share price comes after Suzlon Energy Ltd announced a sharp rise in its quarterly profit. The company posted a consolidated net profit of Rs 1,181 crore in the fourth quarter of FY25, a big increase from Rs 254 crore in the same quarter last year.This growth was supported by a deferred tax gain of Rs 600 crore. The company's sales for the quarter also increased to Rs 3,773.50 crore from Rs 2,179.20 crore a year ago, marking a growth of 73.20%.STRONG PERFORMANCE IN Q4 FY25Suzlon's performance during the January to March quarter was also supported by strong project execution. The company delivered 573 megawatts (MW) in Q4FY25, compared to the estimated 475 MW. This helped improve its operating profit margin to 18.3%, which was higher than the expected 14.7%.Despite higher depreciation and interest costs related to the Renom acquisition, Suzlon still managed to beat profit before tax (PBT) estimates by 25%, according to a report by Nuvama Institutional Equities.'Deferred tax asset creation of Rs 640 crore drove a 2.7 times profit after tax (PAT) beat,' said the report. It added that the tax benefit was recorded earlier in FY25 instead of FY26, with limited effect on FY27 expectations.OUTLOOK AND BROKERAGE VIEWNuvama Institutional Equities updated its projections for Suzlon Energy. It raised its estimates for sales by 5–7% and operating profit by 8–15% for FY26 and FY27. The brokerage kept a 'Hold' rating on the stock, with a revised target price of Rs 68, up from Rs 61 earlier.The change was based on 40 times estimated earnings for FY27 (for wind turbine generators and Foundry & Forging business) and a discounted cash flow (DCF) model for its operations and maintenance (O&M) segment.Suzlon shares have already gone up 16% in the last one month and are up 44% in the past one year, showing rising interest from investors.One area of concern highlighted by Nuvama is the low order inflow in Q4FY25, which stood below 100 MW. This was due to the cancellation or shortening of some orders. However, the company still holds a healthy order book of 5 gigawatts (GW), which is expected to be executed over the next 24 months. This gives Suzlon a clear revenue path going forward.Nuvama also said that Suzlon is likely to benefit from the increasing focus on green energy in government tenders. The company holds a strong position in the commercial and industrial segment (which makes up 55% of its order book) and also works with public sector units (PSUs).It remains one of the two main players in the EPC (engineering, procurement, and construction) and wind turbine manufacturing space in India, holding a market share of over 30%.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 minutes ago
- Time of India
Tesla secures fourth India office in Mumbai as part of expansion strategy
As part of its broader strategy to expand operations in India and build a local ecosystem for future manufacturing and supply chain activities, Tesla has leased a new commercial space in central Mumbai 's Kurla west area, marking another step in its India entry. The new premise will be utilised to set up a vehicle service center. This is Tesla's fourth commercial space in India, after its engineering facility in Pune, a registered office in Bengaluru, and a 30-seater office near Mumbai's central business district, Bandra Kurla Complex (BKC) secured for a year. This is also the second commercial transaction concluded by Tesla in quick succession over the past two months, reflecting its increasing focus on operational readiness in India. The US company's India arm Tesla India Motor & Energy has signed a five-year lease for the new premises in Macrotech Developers ' Lodha Industrial and Logistics Park in Kurla spanning across 24,500 sq ft. The agreement, registered in May, includes a starting monthly rent of Rs 37.53 lakh. Over the entire lease term, the company will pay more than Rs 24 crore in rent. The license period of five years starts on April 20 and the agreement includes a rent-free period of one month and ten days, with rent payments beginning on June 1, showed the documents accessed through realty data analytics firm CRE Matrix. The rent is subject to an annual escalation of 5% and Common Area Maintenance (CAM) charges are set at Rs 10 per sq ft of chargeable area, with a 5% escalation applicable at the start of each financial year. This deal follows the company securing its first India showroom in BKC, marking a key milestone in its long-awaited entry to its growing EV market. This deal had set a national record in terms of lease rentals at Rs 881 per sq ft a month. ET's email query to Tesla India and the property owner Macrotech Developers remained unanswered until the time of going to press. The move assumes significance and indicates Tesla's approach to India that has shifted into high gear since February, following Prime Minister Narendra Modi's meeting with Musk during his US visit. The EV giant had earlier raised concerns over steep import duties in India. Tesla's India entry has been the subject of much anticipation, particularly after recent policy tweaks by the Indian government aimed at encouraging global EV manufacturers to invest and set up manufacturing units locally. Though Tesla is yet to confirm a factory location, moves like this lease suggest groundwork is quietly underway.
Economic Times
14 minutes ago
- Economic Times
India's international visitor spend soars to record highs: WTTC
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The World Travel & Tourism Council ( WTTC ) is forecasting a 'record-breaking' year for India 's travel and tourism sector this year, with its economic contribution set to reach over Rs 22 trillion in 2025, whilst employment in the sector is expected to reach more than 48 visitor spend is expected to reach Rs 3.2 trillion, whilst spending from domestic travellers is set to hit Rs 16 stated by 2035, travel and tourism's contribution to the national economy is forecast to almost double, to reach just under Rs 42 trillion, with the sector employing almost 64 million released Tuesday from the World Travel & Tourism Council (WTTC) released Tuesday stated that international visitor spends in India reached a record Rs 3.1 trillion in 2024, 9% above the previous peak of to WTTC's latest Economic Impact Research (EIR), while domestic travel has remained a 'vital force', with spending soaring to Rs 15.5 trillion, (22% above 2019 levels), the revival of international tourism is now propelling the sector into a 'bold' new era of and tourism contributed almost Rs 21 trillion to the Indian economy last year, 20% ahead of 2019 sector also supported an all-time high of almost 46.5 million jobs, equivalent to 9.1% of total employment across country also welcomed 20 million international visitors in 2024 - 2.3 million more than while overall international visitor numbers went up considerably last year, as per WTTC research, the numbers and the growth compared to pre pandemic levels seems to have been driven considerably by visits by non-resident per data released by the ministry of tourism, India received more than 9.65 million foreign tourists in calendar year 2024, rising 1.4% from 9.52 million in 2023 but declining 11.6% from 10.93 million in said it calls for continued investment and targeted policy support, and would urge the government to reconsider its recent decision to reduce funding for overseas tourism promotion.'India's Travel & Tourism sector is experiencing unprecedented growth, with international visitor numbers now at record highs after a period of strong domestic reliance. We strongly support the government's plans to simplify the e-visa process. Making it easier to visit India is one of the fastest ways to unlock further international arrivals and spending,' said Julia Simpson, WTTC President and CEO. "While visa on arrival and e visa systems are in place, reciprocal policies and long delays for key markets like the US, where appointments are reportedly unavailable until 2026 continue to hinder tourists," she global tourism body's research also reveals India's business travel is experiencing record growth, with combined domestic and international spending hitting Rs 1.1 trillion last year, surpassing the 2019 peak by 2.6%.The council said India is 'well-placed' to become one of the world's most dynamic tourism economies, with its dynamic mix of heritage, natural beauty, and modern innovation, and that it calls on the government to match the sector's resilience and ambition with 'clear', 'consistent' policy support.
New Indian Express
14 minutes ago
- New Indian Express
Medical representatives banned from visiting doctors in central government hospitals
NEW DELHI: The centre has directed central government hospitals, including Safdarjung and Dr RML Hospitals, to not allow medical representatives inside the hospital premises. This is not the first time the centre has issued such a stern message barring pharma companies' from influencing doctors'. In an order issued on May 28, the Directorate General of Health Services (DGHS), Dr Sunita Sharma, said, 'This is in reference to the earlier instructions regarding not permitting entry of medical representatives in hospital premises. In this regard, it is once again instructed that the medical representatives should not be permitted in the hospital premises. The head of the institutions shall give necessary strict directions in the matter to all officials,' said the order, which was marked to Medical Superintendents of Safdarjung Hospital and Dr. Ram Manohar Lohia Hospital, and Directors of Lady Hardinge Medical College and Associated Hospitals and Rural Health Training Centre, Najafgarh. 'Medical representatives may be requested to share recent advances regarding any treatment/investigation/procedure by email or other digital media,' the notice clarified. 'It is requested to take necessary action in the matter and an action taken report may be furnished to this Directorate,' the order further added. Reacting to the order, RTI activist and ophthalmologist, Dr K V Babu said, 'Though I support not allowing medical representatives during working hours, blanket ban on entry is not a welcome decision." Dr Babu highlighted the issue of 30 doctors, who travelled to foreign countries, with the funding of a pharma company to the tune of Rs. 1.9 crore. He said he had filed an RTI on the issue. The DoP in its order, dated December 23, told him that they will share the details of the doctors. But, he said, "they are still sitting over it even after five months. No action against the pharma company was also taken despite the UCPMP code being in place.' The Department of Pharmaceuticals (DoP) last year notified a new code that prohibits pharma companies from offering gifts and travel facilities to healthcare professionals or their family members. The Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024 also bans supply of free samples to those who are not qualified to prescribe such a product. However, the Alliance of Doctors for Ethical Healthcare (ADEH) has been demanding that the UCPMP be made mandatory to bring fairness in marketing of the drugs as the industry has failed to comply with the code on a voluntary basis.
