While upgrading, Morgan Stanley revised its target price for Suzlon to Rs 71 from Rs 78, citing the recent steep correction in the stock price as a buying opportunity.
The brokerage continues to view Suzlon as a key beneficiary of India’s energy transition, supported by a strong business moat and a large 5.1GW order backlog to be executed over the next 24 months. The company has been selective in taking on orders with higher visibility in offtake. With reduced competitive intensity, Morgan Stanley expects Suzlon’s market share to rise to 35-40% by FY27.
The firm also estimates that India’s wind additions will drive 32GW ($31 billion) of orders for wind OEMs from FY25-30.
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In Q2 FY25, Suzlon Energy reported a 96% jump in its consolidated net profit at Rs 201 crore versus Rs 102 crore in the year ago period. The company’s revenue from operations during the quarter stood at Rs 2,093 crore, up 48% over Rs 1,417 crore reported in the corresponding quarter of the previous financial year.
Company’s Earnings, Before Interest, Taxes, Depreciation and Amortisation (EBITDA) in the reported quarter stood at Rs 294 crore versus Rs 225 crore in the year ago period. It was 31% higher on a YoY basis. Meanwhile, EBITDA margin in Q2FY25 was down to 14.1% from 15.9% in the year ago period.
At 10:23 am, Suzlon’s shares were trading 4.9% higher at Rs 62.3 on the BSE. On a year-to-date basis, the stock has gained 62%, and it has surged 670% over the past two years, delivering multibagger returns. The company currently has a market capitalization of Rs 85,111 crore.
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