Suzlon Energy shares remained under pressure for the third straight session on Thursday, August 28, sinking another 2% to a three-month low of ₹55.89. The decline has brought the stock’s August fall to 8% so far, and it is on track to record a third consecutive monthly loss, the second such instance since August 2023.
Despite the company’s long-term prospects remaining intact, short-term headwinds are weighing on the stock. These include weaker-than-expected June-quarter numbers and the impending departure of Group CFO Himanshu Mody.
Analysts noted that Mody’s exit could be a short-term negative, given his key role in Suzlon’s balance sheet turnaround. They also flagged concerns over installations, which have lagged deliveries in recent quarters, along with a tepid FY26 year-to-date new order inflow of just 1 GW.
To address project execution delays, Suzlon is prioritising land-ready projects and building a pipeline through advance land acquisition. Suzlon expects this strategic shift to enhance commissioning timelines beginning in FY27.
While analysts believe these near-term challenges are unlikely to derail Suzlon’s momentum, supported by favourable regulatory tailwinds, execution risks remain. The company holds a strong order book of 5.7 GW, marking 10 straight quarters of growth, fueled by demand from Commercial & Industrial (C&I) and PSU segments.
This provides healthy visibility for the next 2–3 years despite challenges such as PPA delays and land acquisition hurdles. Management has also reiterated its guidance of 60% growth across key parameters, including deliveries, revenue, and EBITDA for FY26. It expects India to add 6 GW of wind energy capacity in FY26 and 7–8 GW in FY27.
Suzlon Energy shares sink 34% from 1-year peak
The recent sell-off has dragged the stock 30% over the last three months. From its August 2024 highs of ₹86 apiece, the stock is down 34%.
In its latest note, domestic brokerage Geojit Financial Services upgraded the stock to ‘buy’ but trimmed its target price to ₹75, citing execution delays.
“With earnings forecast to grow at 43% CAGR and ROE rising to 27.1% by FY27E, the stock appears undervalued at 27.7x FY27 EPS. Suzlon’s ALMM compliance and backward integration offer a strong competitive moat, but sustaining margin discipline remains key to preserving pricing power,” the brokerage said.
ICICI Securities also retained its ‘buy’ call on the stock with a target price of ₹76, expecting the order pipeline to remain strong over the next 2–3 years.
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.
