The energy sector is super important for our world! It’s a diverse industry that does a big job of powering economies and societies everywhere. It includes lots of different energy sources, like fossil fuels and also renewable sources. Today, we will talk about Suzlon Energy which is a leading renewable energy solutions provider. We will also forecast the Share price target for Suzlon Energy from 2023-2030.
What does Suzlon Energy do?
Suzlon Energy is a company that provides renewable energy solutions. They offer a wide range of products and services that help generate clean and sustainable energy. Their offerings include wind turbine generators, blades, nacelles, towers, foundations, solar energy solutions, as well as design and engineering, project management, and O&M services.
The company was founded in 1995 by Tulsi Tanti, a visionary Gujarati businessman. With its headquarters in Pune, India, Suzlon operates manufacturing facilities in India, China, and the United States. Their expertise and dedication have led to the installation of over 20 GW of wind energy capacity across 17 countries, establishing them as one of the leading wind turbine manufacturers worldwide. Customers of this Suzlon Energy Ltd are mainly power generation companies like Relaince power.
What is the current share price of Suzlon Energy?
Currently, Suzlon Energy shares are trading at a price of ₹15.30. The share is trading near its 52 Week’s high of ₹15.75. In the last one year, the share price of Suzlon has risen by 188.30% from its 52-week low level of ₹5.42.
Expected Share Price Target of Suzlon Energy in 2023
The minimum share price target of Suzlon Energy is ₹17, which can be achieved by September 2023. The maximum price that the share can reach is ₹20.23 by Nov 2023.
The reason for bigger targets is its improving fundamentals and rising demand for green energy. Let us walk through the company’s fundamentals now.
First, let’s talk about net sales. It’s interesting that their net sales were fluctuating in different quarters. In March 2022, they made ₹1,666.04 crores in sales, but in June 2022, it dropped to ₹802.61 crores. However, things started to pick up, and by March 2023, their net sales reached ₹1,011 crores.
Now, Let’s take a closer look at Suzlon Energy’s operating profit, which is the profit they made from their main business activities. It’s an essential indicator of how well the company is doing in its core operations.
Suzlon Energy's performance improved after 2022
In June 2022 and December 2022, the company faced some challenges, and their operating profit turned negative, meaning they had losses. However, things started to improve for Suzlon Energy, and by March 2023, they managed to turn things around.
They achieved a positive operating profit of ₹20.43 crores in that quarter. This positive turnaround is a good sign for the company, as it shows that they were able to make profits from their main business activities in March 2023, after facing some tough times earlier.
Suzlon Energy's Short-term targets for 2023
| Level | Downside target | Upside target |
|---|---|---|
| Level 1 | ₹14.06 | ₹17.01 |
| Level 2 | ₹13.14 | ₹18.06 |
| Level 3 | ₹12.25 | ₹19.14 |
| Level 4 | ₹11.39 | ₹20.25 |
| Level 5 | ₹10.65 | ₹21.39 |
Suzlon Energy share price target for 2024
Now, let’s talk about other income, which includes money from non-business sources. This figure also had its ups and downs. In March 2022, they earned ₹14.81 crores from other income, and by September 2022, it went up to ₹83.13 crores. But in December 2022, it decreased to ₹47.35 crores. As of March 2023, they earned ₹49.12 crores from other sources.
Interest and depreciation are also important to look at. Interest expenses are the money they pay on loans and debts, while depreciation is the cost of using their assets over time. In March 2022, they paid ₹194.14 crores in interest, and by December 2022, it decreased to ₹92.20 crores. As of March 2023, they paid ₹84.15 crores. Depreciation expenses were ₹47.73 crores in March 2022, and by March 2023, it increased to ₹61.99 crores.
Looking at the above figures the minimum share price target for Suzlon Energy will be ₹28.80, and the Maximum target will be ₹40, which can be achieved by the fourth quarter of 2024.
Suzlon Energy share price target for 2025
The company’s share capital has been increasing over the years. This means they are getting more money from selling shares, which can help them grow and invest in new projects.
Suzlon Energy has borrowed money to run its operations. While the borrowing levels have gone up and down, they seem to have managed it well to avoid excessive debt.
The company is able to Increase its share capital and effectively manage its debt which makes it a great choice of investment for 2025. In 2025, the minimum share price target for Suzlon energy will be ₹57.25 and the maximum target will be ₹82.75.
Suzlon Energy share price target 2023 - 2030
| Year | Maximum Target | Maximum Target |
|---|---|---|
| 2023 | ₹21.39 | ₹21.39 |
| 2024 | ₹28.80 | ₹40 |
| 2025 | ₹57.25 | ₹82.75 |
| 2026 | ₹104.65 | ₹140.20 |
| 2027 | ₹167.55 | ₹200 |
| 2028 | ₹224.05 | ₹258 |
| 2029 | ₹284 | ₹340.20 |
| 2030 | ₹390.25 | ₹498.65 |
The share price of Suzlon Energy is expected to reach new high each year. In the next 10 years, Suzlon can reach a price target of ₹498.65. This is a growth of almost 3200% from its current price.
Suzlon Energy's Financial Statements
| PARTICULARS | MAR 2022 | JUN 2022 | SEP 2022 | DEC 2022 | MAR 2023 |
|---|---|---|---|---|---|
| Net Sales | 1,666.04 | 802.61 | 866.06 | 910.77 | 1,011 |
| Total Expenditure | 1,663.40 | 815 | 814.74 | 914.04 | 990.57 |
| Operating Profit | 2.64 | -12.39 | 51.32 | -3.27 | 20.43 |
| Other Income | 14.81 | 16.59 | 83.13 | 47.35 | 49.12 |
| Interest | 194.14 | 160.46 | 104.75 | 92.20 | 84.15 |
| Depreciation | 47.73 | 42.04 | 45.89 | 40.12 | 61.99 |
| Exceptional Items | -82.87 | 2,504.17 | 20.59 | 0 | 17.32 |
| Profit Before Tax | -307.29 | 2,305.87 | 4.40 | -88.24 | -59.27 |
| Tax | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -307.29 | 2,305.87 | 4.40 | -88.24 | -59.27 |
| Adjusted EPS (Rs) | -0.31 | 2.16 | 0 | -0.08 | -0.05 |
What is the financial performance of Suzlon Energy?
Suzlon Energy’s financial performance has shown a mixed picture over the years. It is important to note that the company has faced challenges and recorded losses in certain periods. However, they have also made efforts to improve their financial position and explore opportunities for growth.
In terms of net sales, Suzlon Energy witnessed a decline from ₹1,666.04 crores in March 2022 to ₹802.61 crores in June 2022. However, there was a slight recovery with sales reaching ₹1,011 crores in March 2023. This indicates some stabilization and a potential upward trend in sales.
Total expenditure has also fluctuated, with the company managing to control costs in some quarters. However, it is crucial for them to consistently keep their expenses in check to ensure profitability.
Suzlon Energy's competitors
| COMPANY | PRICERs. | MCAPCr. |
|---|---|---|
| Siemens | 3,766.45 | 1,34,130.91 |
| ABB India | 4,423 | 93,727.07 |
| Havells India | 1,282.80 | 80,368.67 |
| CG Power & Indl.Soln | 378.50 | 57,804.49 |
| Suzlon Energy | 15.30 | 19,083.82 |
| Hitachi Energy India | 4,157.85 | 17,621.66 |
| Apar Inds | 3,470.05 | 13,279.40 |
| V-Guard Inds. | 282.50 | 12,247.17 |
| Schneider Ele. Infra | 260.45 | 6,227.46 |
| GE T&D India | 219.30 | 5,615.10 |
Frequently Asked Questions
Is it good time to buy Suzlon Energy?
Suzlon Energy has shown a revenue growth of 16.68% which shows that the company is growing its revenue at a good pace. The growing demand for renewable energy sources and good growth rate make Suzlon Energy a great company to buy currently.
What are risks involved in buying Suzlon Energy?
Suzlon Energy has a negative book value and a poor ROCE of -95.10%. In the last 3 years, the ROE is also zero. Though the future of the company looks good, it can be risky to buy without properly studying its technicals.
Conclusion
Energy has experienced both challenges and signs of recovery in its financial performance. To ensure sustained growth, the company needs to focus on increasing sales, controlling expenses, optimizing operations, and effectively managing exceptional items. By doing so, they can enhance their profitability and strengthen their position in the renewable energy industry.
But it is important to note that every industry has its own cycle. In the last 10 years, the renewable energy industry has been underperforming. However, now as more and more people are getting aware of the advantages of Green energy, the industry will see a turn around. This will ensure Suzlon Energy’s share price target reaches its previous high of ₹423 in the coming years.
Disclaimer : All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. We are not SEBI Registered. These targets are hypothetically predicted based on market condition and may change.
