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Economic Times
2 days ago
- Business
- Economic Times
Suzlon Energy shares slide 11% in 4 days. Should you buy, sell or hold?
Brokerages were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent correction. Suzlon reported a 7% YoY rise in consolidated net profit to Rs 324 crore for the June quarter, missing estimates due to a Rs 134 crore deferred tax charge. Revenue climbed 55% to Rs 3,117 crore on higher turbine volumes, while EBITDA surged 62% to Rs 599 crore with margins widening to 19.2%. Tired of too many ads? Remove Ads Q1 results weigh on sentiment Brokerages remain divided Tired of too many ads? Remove Ads Outlook anchored in domestic demand Tired of too many ads? Remove Ads Shares of Suzlon Energy extended their losing streak on Monday, falling as much as 5.7% to Rs 60.06 on the BSE and marking a four-day decline of 10.6%. The slide comes in the wake of the company's first-quarter results that fell short of expectations on profit after tax, coupled with news of the impending exit of the company's group chief financial stock is now trading below all eight of its key simple moving averages, spanning 5-day through 200-day charts, underscoring bearish sentiment across short-term and long-term horizons. The Relative Strength Index stands at 35.4, close to oversold territory, while the Moving Average Convergence Divergence at -0.9 remains below both centre and signal lines, reinforcing the June-quarter consolidated net profit rose 7% year-on-year to Rs 324 crore, but missed estimates due to a deferred tax charge of Rs 134 crore. Revenue surged 55% to Rs 3,117 crore, driven by higher turbine volumes, and EBITDA jumped 62% to Rs 599 crore with margins expanding to 19.2%. The company's order book grew for a 10th straight quarter, rising by another concerns deepened after Suzlon said Group CFO Himanshu Mody will step down effective August 31, with a successor to be named were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent Oswal reaffirmed its 'Buy' rating and pegged a target price of Rs 80. The brokerage cited 'strong execution at 444MW' in Q1, a 62% jump year-on-year, along with a healthy 19% EBITDA brokerage said that while adjusted profit after tax missed estimates due to a Rs 1.34 billion deferred tax charge, prospects such as a potential 700MW deal with Tata Power and improving per-MW realisations supported the positive Securities echoed that optimism, retaining a 'Buy' call with a Rs 76 target. The brokerage noted Suzlon's 'highest-ever Q1 execution' and pointed to the 5.7GW order book, about 3.7 times FY25 execution levels, as a major strength. It highlighted the government's domestic sourcing mandate for wind components as a structural advantage for Suzlon, given its roughly 40% market share. JM Financial also stayed bullish, reiterating a 'Buy' rating with a Rs 78 target price. It credited operating leverage for the company's margin improvement, with the wind turbine generator segment's EBIT margin expanding to 15% from 10% a year brokerage, however, cautioned that while deliveries have been strong, installations have lagged in recent Institutional Equities struck a more cautious note. It kept a 'Hold' rating and trimmed its target to Rs 67, citing a weaker EPC mix that dented realisations. The brokerage also flagged the resignation of CFO Himanshu Mody as a potential short-term negative, stressing that he played a key role in Suzlon's read | GST Reforms 2.0: Full list of over 40 stocks that can benefit from PM Modi's Diwali promise Suzlon continues to guide for 60% growth in deliveries, revenue and EBITDA in FY26. Brokerages expect the company to benefit from India's 122GW wind capacity target by FY32 and a growing commercial and industrial segment that may require 78GW by challenges around land and grid connectivity remain, but bullish calls rest on Suzlon's dominant domestic market share, cost efficiencies and a swelling pipeline.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
2 days ago
- Business
- Time of India
Suzlon Energy shares slide 11% in 4 days. Should you buy, sell or hold?
Q1 results weigh on sentiment Brokerages remain divided Live Events Outlook anchored in domestic demand (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Suzlon Energy extended their losing streak on Monday, falling as much as 5.7% to Rs 60.06 on the BSE and marking a four-day decline of 10.6%. The slide comes in the wake of the company's first-quarter results that fell short of expectations on profit after tax, coupled with news of the impending exit of the company's group chief financial stock is now trading below all eight of its key simple moving averages, spanning 5-day through 200-day charts, underscoring bearish sentiment across short-term and long-term horizons. The Relative Strength Index stands at 35.4, close to oversold territory, while the Moving Average Convergence Divergence at -0.9 remains below both centre and signal lines, reinforcing the June-quarter consolidated net profit rose 7% year-on-year to Rs 324 crore, but missed estimates due to a deferred tax charge of Rs 134 crore. Revenue surged 55% to Rs 3,117 crore, driven by higher turbine volumes, and EBITDA jumped 62% to Rs 599 crore with margins expanding to 19.2%. The company's order book grew for a 10th straight quarter, rising by another concerns deepened after Suzlon said Group CFO Himanshu Mody will step down effective August 31, with a successor to be named were quick to weigh in after Suzlon's Q1 results, with three out of four major research houses maintaining bullish calls despite the recent Oswal reaffirmed its 'Buy' rating and pegged a target price of Rs 80. The brokerage cited 'strong execution at 444MW' in Q1, a 62% jump year-on-year, along with a healthy 19% EBITDA brokerage said that while adjusted profit after tax missed estimates due to a Rs 1.34 billion deferred tax charge, prospects such as a potential 700MW deal with Tata Power and improving per-MW realisations supported the positive Securities echoed that optimism, retaining a 'Buy' call with a Rs 76 target. The brokerage noted Suzlon's 'highest-ever Q1 execution' and pointed to the 5.7GW order book, about 3.7 times FY25 execution levels, as a major strength. It highlighted the government's domestic sourcing mandate for wind components as a structural advantage for Suzlon, given its roughly 40% market share. JM Financial also stayed bullish, reiterating a 'Buy' rating with a Rs 78 target price. It credited operating leverage for the company's margin improvement, with the wind turbine generator segment's EBIT margin expanding to 15% from 10% a year brokerage, however, cautioned that while deliveries have been strong, installations have lagged in recent Institutional Equities struck a more cautious note. It kept a 'Hold' rating and trimmed its target to Rs 67, citing a weaker EPC mix that dented realisations. The brokerage also flagged the resignation of CFO Himanshu Mody as a potential short-term negative, stressing that he played a key role in Suzlon's read | GST Reforms 2.0: Full list of over 40 stocks that can benefit from PM Modi's Diwali promise Suzlon continues to guide for 60% growth in deliveries, revenue and EBITDA in FY26. Brokerages expect the company to benefit from India's 122GW wind capacity target by FY32 and a growing commercial and industrial segment that may require 78GW by challenges around land and grid connectivity remain, but bullish calls rest on Suzlon's dominant domestic market share, cost efficiencies and a swelling pipeline.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
2 days ago
- Business
- Mint
Suzlon Energy eyes order tailwinds after robust Q1
Suzlon Energy Ltd's shares have shed nearly 5% in two sessions, as its solid performance in the June quarter and meeting its guidance seemed to be eclipsed by the sudden exit of its chief financial officer Himanshu Mody. The company's Q1 results were in line with its earlier guidance of 60% growth for FY26 in key parameters, and there is optimism over its upcoming order inflow. Deliveries of wind turbine generators (WTG) were up 62% year-on-year (y-o-y) to 444 MW and earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 64% to ₹603 crore. Profit after tax growth looked modest at 7%, but that was due to a non-cash charge of deferred tax this time versus nil a year ago. Profit before tax grew 52% to ₹459 crore. CFO exit clouds strong results It seems that the surprise resignation of CFO Mody, announced along with the results, did not go down well with the Street. Mody had joined Suzlon in August 2021, and his term coincided with the sharp decline in the company's net debt from ₹6,700 crore to net cash of ₹1,620 crore as on 30 June. Read more: ONGC beat Oil India in Q1, but the tables could turn soon True, the CFO's importance cannot be undermined. But Suzlon's strong balance sheet also means that the role of the chief executive officer (CEO) is more crucial now to drive the company's strategic business growth. During the earnings call, CEO J.P. Chalasani was asked about the existential threat to wind power, given that the evolution of battery energy storage systems can make solar power available round the clock. The CEO clarified that it is not possible to replace wind power entirely by storing solar power in a battery for later use, as that can put the electricity grid under pressure. Also, the right comparison for economics should be either solar to wind or solar plus battery to wind plus battery. If solar plus battery is compared to wind, then wind should work out to be cheaper, as battery storage also has a cost. Battery energy storage cost increases the cost per unit of electricity by at least one rupee per unit irrespective of the source of the energy stored, said the CEO. Note that the capital expenditure and operating expenditure for wind power plants is generally more than solar power. But these disadvantages of wind power plants are largely offset by the comparatively better capacity utilization, given that solar energy generation occurs only during the day. Read more: Muthoot Finance Q1 shines on gold loan boom; more gains likely The ministry of new and renewable energy has notified the approved list of models and manufacturers in July, mandating domestic sourcing of about 75% of WTG components, including blades, towers, gearbox, generators, etc. This should boost the order inflow for players such as Suzlon and Inox Wind Ltd. Note that Suzlon's order inflow--derived as the difference between closing and opening order book and then adding deliveries during the quarter to the figure--had peaked at 1,170 MW in Q2FY25. The stock price had also hit its all-time peak of ₹86 in September of that quarter. In Q1FY26, a sequential revival has been seen, wherein order inflow rose 38% to 780 MW, though far lower than the quarterly peak. It also helps that Suzlon has bagged a big order of 381 MW from Zelestra in the current quarter. Suzlon is indeed India's leading listed WTG company, with an annual capacity of 4.5 GW, followed by Inox Wind with a 2.5 GW capacity. But Suzlon also trades at a large valuation premium over Inox at a price-to-earnings multiple of 25x versus 16x based on earnings estimates for FY27, as per Motilal Oswal Financial Services. It appears investors are factoring in the brighter picture well, for now.
News18
7 days ago
- Business
- News18
Suzlon Energy Price Target Raised To Rs 80 Despite 4% Dip — What Should Investors Do?
Last Updated: Suzlon Energy's share price dropped over 4% in Wednesday's trade, but most brokerages maintained a positive outlook; Should you invest? Suzlon Energy's share price dropped over 4% in Wednesday's trade, but most brokerages maintained a positive outlook, lifting price targets to as high as Rs 80. Analysts cited record first-quarter deliveries, robust order inflows, and a strong domestic demand environment as reasons for their optimism. Motilal Oswal, ICICI Securities, and JM Financial reiterated 'Buy' ratings, pointing to the company's execution momentum, 60% annual growth guidance, and competitive advantage in the home market. Nuvama Institutional Equities, however, retained a 'Hold' rating, citing margin pressures and leadership changes. Motilal Oswal reaffirmed its ₹80 target, implying a 27% upside from the last closing price of Rs 63, after Suzlon reported Q1FY26 results broadly in line with estimates. The brokerage highlighted 'strong execution at 444MW," up 62% year-on-year, and a healthy 19% EBITDA margin. ICICI Securities maintained a Rs 76 target, noting Suzlon's 'highest-ever Q1 execution" and a growing 5.7GW order book—around 3.7 times FY25 execution levels. JM Financial, with a ₹78 target, credited operating leverage for improved margins in the wind turbine generator (WTG) segment, though it flagged a gap between deliveries and installations. Nuvama Institutional Equities trimmed its target to Rs 67 despite acknowledging Q1 execution beat estimates. The brokerage pointed to a weaker EPC mix affecting realisations and flagged the August 31 resignation of CFO Himanshu Mody—credited with playing a key role in Suzlon's turnaround—as a near-term concern. Strong Q1 Performance For the June quarter, Suzlon posted a consolidated net profit of Rs 324 crore, up 7% year-on-year, on revenue of Rs 3,117 crore—a 55% jump driven by higher wind turbine generator volumes. EBITDA rose 62% to Rs 599 crore, with margins improving to 19.2%. The company's order book grew for the 10th consecutive quarter, bolstered by 1GW in fresh orders. Brokerages expect Suzlon to benefit from India's target of 122GW wind capacity by FY32, with the commercial and industrial (C&I) segment alone requiring 78GW by FY30. Management has maintained its FY26 guidance of 60% growth across deliveries, revenue, and EBITDA. While land acquisition and grid connectivity remain execution challenges, most analysts see Suzlon's expanding order book, regulatory support, and cost efficiencies sustaining earnings momentum. Nuvama, however, sees limited upside without a stronger EPC mix. view comments First Published: News business » markets Suzlon Energy Price Target Raised To Rs 80 Despite 4% Dip — What Should Investors Do? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
7 days ago
- Business
- Economic Times
Suzlon Energy's share price target goes up to Rs 80. Should you buy after today's dip?
Suzlon Energy shares slipped over 4% in Wednesday's trade, but brokerages remain largely bullish, lifting price target to as high as Rs 80 on the back of record first-quarter deliveries, robust order inflows, and a strong domestic demand outlook. ADVERTISEMENT Four major research houses, Motilal Oswal, ICICI Securities, JM Financial, and Nuvama, said the company's execution momentum, 60% annual growth guidance, and home-market advantages outweigh near-term headwinds such as the CFO's exit later this Oswal reaffirmed its 'Buy' rating, setting a target price of Rs 80, implying a 27% upside from the last closing price of Rs 63, after Suzlon reported Q1FY26 results largely in line with estimates. The brokerage highlighted 'strong execution at 444MW' – up 62% year-on-year (YoY) – and healthy 19% EBITDA margins. While adjusted profit after tax missed expectations due to a Rs 1.34 billion deferred tax charge, Motilal Oswal cited a potential 700 MW deal with Tata Power and improving per-MW realisations as key upside Securities retained a 'Buy' rating with a Rs 76 target, pointing to Suzlon's 'highest-ever Q1 execution' and a swelling 5.7GW order book, about 3.7 times FY25 execution levels. The brokerage said the government's domestic sourcing mandate for wind components gives Suzlon, with ~40% market share, a 'home advantage.'JM Financial, also on a 'Buy' with a Rs 78 target, said operating leverage drove the margin improvement, with the WTG segment's EBIT margin expanding to 15% from 10% a year earlier. The brokerage cautioned, however, that installations have lagged deliveries in recent quarters. ADVERTISEMENT Nuvama Institutional Equities kept its stance at 'Hold' and trimmed its target to Rs 67, noting that while Q1 execution of 444MW beat its estimates, lower EPC mix dented realisations. Unlock 500+ Stock Recos on App The brokerage also flagged the August 31 resignation of CFO Himanshu Mody, who played a key role in Suzlon's turnaround, as a short-term negative. ADVERTISEMENT For the June quarter, Suzlon posted a 7% rise in consolidated net profit to Rs 324 crore from Rs 302 crore a year earlier. Revenue jumped 55% to Rs 3,117 crore in Q1 FY26, driven by higher wind turbine generator rose 62% to Rs 599 crore in the June 2025 quarter, with margins improving to 19.2%. The order book grew for a 10th straight quarter, bolstered by 1GW of new orders. ADVERTISEMENT Brokerages expect the company to benefit from India's target of 122GW wind capacity by FY32, with the C&I segment alone requiring 78GW by FY30. The company's management is maintaining its FY26 guidance of 60% growth across deliveries, revenue, and execution challenges around land and grid connectivity persist, Motilal Oswal, ICICI Securities, and JM Financial see Suzlon's expanding order book, regulatory support, and cost efficiencies sustaining earnings momentum. Nuvama, by contrast, sees limited upside from current levels without a stronger EPC mix. Also read | Suzlon Energy shares fall over 3% but Motilal sees a rally till Rs 80. Should you buy? ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
