Suzlon Energy, one of the top holdings among retail investors, has gone through a challenging period in 2025 as its shares struggled to maintain a five-year unbroken rally.
This came amid a shift in investor preference toward large-cap stocks from their once-favored mid- and small-cap space, driven by a mismatch between fundamentals and valuations, while company-specific issues also weighed on sentiment, placing the stock among the top laggards.
The shares began the year on a negative note, falling 15% in January and 13% in February, but saw a recovery over the following three months. However, the rebound proved short-lived, pushing the stock back into the pressure zone as it closed five of the next six months lower, resulting in significant wealth erosion.
On track for first annual drop since 2019
Multiple concerns, including a slowdown in installations, which have lagged deliveries in recent quarters, and tepid FY26 year-to-date new order inflows, have dragged the stock down 29% from its May highs and contributed to a 17% decline in 2025. This has put the stock on track to register its first annual drop since 2019, when it contracted 66%.
Although the management addressed these issues during its manufacturing day on December 4, projecting a limited impact on near-term order flows from the slowdown in central renewables and stating that nearly 15 GW of wind orders remain in the bidding or awarding stage, this failed to ignite a recovery rally.
Management remains confident that India can reach 10 GW of annual wind installations by FY28 (vs. a 6.5–7 GW run rate in FY26). Growing demand from AI/data centers and rising C&I load represent an upside potential to India’s 100 GW wind target by 2030.
Despite sentiment remaining weak, brokerages continue to see the stock crossing the ₹80 level, as their conviction remains intact amid expanding capacity, strong execution, rising wind demand, and a multi-year clean energy upcycle.
Suzlon’s short-term weakness fails to shake analysts’ confidence
Anand Rathi has taken the most bullish stance, valuing Suzlon at ₹82, implying a 55% upside from its current level of ₹52. The brokerage believes Suzlon is strategically positioned to benefit from India’s accelerating wind energy cycle.
ICICI Securities has reaffirmed its Buy rating with a target of ₹76, citing Suzlon’s strong H1FY26 execution and constructive management commentary, particularly regarding concerns over muted renewable capacity additions.
Motilal Oswal Financial Services has also reiterated its Buy rating with a target price of ₹74, emphasising management’s growing confidence in exports, which it views as a major emerging growth driver.
Strong past performance counters recent pain
Although the stock has remained under pressure in 2025, its long-term performance still looks solid, as it continues to trade with 381% returns over the last three years and a 1,025% gain over the last five years. Between April 2023 and September 2024, the stock witnessed a one-way rally, gaining 912%, which also led the stock to reach ₹86, the highest level since 2010.
Retail shareholders own the majority stake of 55.4% in the company as of the end of the September quarter, followed by FIIs and promoters, who held 22.7% and 11.7% stakes, respectively. DIIs also own a 10.1% stake in Suzlon Energy, as per the BSE shareholding data.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
