Suzlon Energy share price slides 4.5%, slips below ₹70 on profit booking after strong Q4 rally
Suzlon Energy share price in focus: Suzlon Energy share price in focus: Suzlon Energy's share price witnessed another day of selling pressure as the stock tumbled 4.5% during Tuesday's trading session (June 3), hitting an intraday low of ₹ 68 apiece and extending its losing streak to the second consecutive day.
The drop in Suzlon's share price can be attributed to profit booking, as the stock saw a strong run-up in May, especially following the release of the company's March quarter results, which pushed the stock to a 6-month high of ₹ 74.30 apiece on May 30, a day after it reported a 365% YoY jump in Q4FY25 consolidated net profit.
The strong rally following the Q4 results led the stock to end May with a solid gain of 27%—its biggest monthly gain since July 2024, when it delivered a return of 31.25%.
Apart from robust March quarter numbers, the Street also welcomed the company's FY26 guidance, issued for the first time in its history. Despite short-term volatility in Suzlon Energy's share price, the long-term outlook remains promising amid a growing order book and India's goal of achieving 500 GW of capacity from non-fossil fuel sources.
Suzlon ended FY25 with a record order book of 5.6 GW, with its S144 platform alone surpassing 5 GW—cementing its position as the leading product in India's wind energy market. Meanwhile, the contribution margin from its WTG (Wind Turbine Generator) business expanded to 23%, marking a 360-basis-point increase, supported by its 4.5 GW manufacturing capacity.
In its earnings filing, the company said it added 10 new production lines for its S144–3.X MW series in FY25 and completed nacelle expansions at its Daman and Pondicherry facilities. It also outlined plans to continue investing in a robust domestic manufacturing and supply chain ecosystem to support India's wind energy ambitions.
Its OMS (Operations and Maintenance Services) business remains a key pillar of growth for the group, currently managing a robust 15 GW of installed wind capacity across India—representing over USD 10 billion in renewable energy assets under management.
Following the company's March quarter results, global brokerage firm Morgan Stanley maintained its 'Overweight' rating with a target price of ₹ 77 per share, while Motilal Oswal also retained its 'Buy' rating, with a target price of ₹ 83 per share.
Suzlon Energy have delivered stellar returns to their shareholders. Although the stock is currently trading at a healthy discount from its recent peak of ₹ 86 apiece, touched in October 2024, it is still up by 601% over the last three years and 2,190% over the last five years—indicating that investors remain optimistic about the company's operational turnaround.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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