Suzlon Energy, known for its wind energy solutions in India, is making a big comeback. Recently, the company’s shares reached a 12-year high, showing a strong recovery after years of financial trouble.
This success isn’t just by chance. It is because of smart decisions, good market conditions, and helpful government policies. Let us look at the main reasons behind Suzlon’s recent success and what it means for the future.
Key Details
| Key Detail | Information |
|---|---|
| Share Price Surge | Rs 50.41, a 12-year high |
| Debt Reduction | Reduced from Rs 12,000 crore in FY20 to zero in FY24 |
| Revenue Growth | 30% increase year-over-year in Q4FY24 |
| EBITDA Growth | 53% increase year-over-year in Q4FY24 |
| Profit After Tax | 4.1 times increase year-over-year in Q4FY24 |
| Order Inflows | Backlog of 3.3 GW |
| Market Capitalization | Rs 68,216 crore |
| Brokerage Ratings | ICICI Securities revised target price to Rs 54 per share |
| Government Support | Funding for offshore wind energy projects announced |
| Market Performance | Over 350% share price increase in the last 12 months |
What makes Suzlon successful
Suzlon’s journey to financial stability started with a big plan to fix its debt. Back in FY20, the company had a huge debt of Rs 12,000 crore. Through smart moves like converting debt to equity and other financial tricks, Suzlon managed to bring this debt down to zero by FY24.
This big reduction not only made the company’s finances look better but also made investors feel more confident. It shows how committed Suzlon is to staying financially healthy.
Financial Performance
Suzlon did really well in the fourth quarter of FY24. The company reported a 30% increase in revenue compared to the same time last year. Plus, their EBITDA (a measure of profit) went up by 53%, showing they are running things efficiently.
Their adjusted profit after tax went up by 4.1 times from the previous year. These numbers show that Suzlon is in good financial health and can make sustainable profits.
Positive Market Sentiment from Government Policies
One big reason for Suzlon’s recent share price jump is the Indian government’s Interim Budget 2024. The budget included support for offshore wind energy projects.
This news was welcomed by the market, and it showed in Suzlon’s share price. The government’s focus on renewable energy and supportive policies have created a good environment for companies like Suzlon to grow.
Strong Order Inflows
Suzlon’s order book is strong, with a backlog of 3.3 GW and many new orders. This shows Suzlon’s leadership in the market and its ability to get big projects regularly.
ICICI Securities has kept a ‘Buy’ rating on Suzlon, pointing out the company’s strong outlook on getting new orders and growing. This strong pipeline of orders ensures that Suzlon will keep growing in the coming years.
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Market Performance
The stock market really believes in Suzlon’s comeback. In the last year, their share price has gone up by over 350%, showing that investors are very confident.
This big jump is not just luck. It is because Suzlon has been doing well, making smart choices, and benefiting from good market conditions. Their ability to get through tough times and come out stronger has really helped build trust with investors.
Suzlon Energy stock gains 3% to hit near 52-week high
On August 2, Suzlon Energy’s shares went up by over 3%, recovering from earlier losses. Investors were happy because of the company’s great Q1 results, positive broker comments, and a good business outlook.
By mid-morning, Suzlon’s shares were up 2.5% at Rs 69.72 on the NSE. In the past month, Suzlon’s shares have increased by 31%.
This rise came after Suzlon’s impressive Q1 results, where net profit jumped 200% to Rs 302 crore. Revenue also went up by 50% to Rs 2,016 crore.
Suzlon also got its biggest-ever order book of 3.8 GW in Q1FY25, which looks good for future growth. Morgan Stanley gave Suzlon a high rating with a target price of Rs 58.5 per share, which the stock has already passed.
Nuvama Institutional Equities has a ‘hold’ rating with a target price of Rs 64, which Suzlon has also passed. They see Suzlon’s growth potential due to industry trends, new technology, and a strong balance sheet.
Geojit has a ‘Buy’ rating with a target price of Rs 73, noting Suzlon’s transformation into a profitable and efficient business. JM Financial also has a ‘Buy’ rating, raising the target price from Rs 54 to Rs 71, because of a healthy order book and strong growth momentum.
So far this year, Suzlon’s stock has gone up 81%, beating the benchmark Nifty 50, which rose 14%. Over the past year, Suzlon has given a huge 277% return, nearly quadrupling investors’ money.
Conclusion
Suzlon Energy has had an incredible journey. They used to have a lot of debt, which means they owed a lot of money. But they made smart decisions to reduce this debt to zero. This was a big deal because it made their finances much healthier and made investors trust them more.
In the fourth quarter of FY24, Suzlon did really well. They made 30% more money compared to the same time last year. Their profit, measured by something called EBITDA, went up by 53%. This shows they are running their business very efficiently.
Their profit after tax (the money they make after paying taxes) increased by 4.1 times from the previous year. These numbers show that Suzlon is in great financial shape and can keep making money.
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People May Ask
Why has Suzlon’s share price gone up recently?
Suzlon’s share price has gone up because they reduced their debt, had great financial results, got positive feedback from the Interim Budget 2024, and received a lot of new orders.
How much debt has Suzlon reduced?
Suzlon cut its debt from Rs 12,000 crore in FY20 to zero in FY24.
What were Suzlon’s financial highlights for Q4FY24?
Suzlon saw a 30% increase in revenue, a 53% increase in EBITDA (a measure of profit), and a 4.1 times increase in profit after tax compared to the previous year.
What is Suzlon’s market capitalization?
Suzlon’s market capitalization is Rs 68,216 crore.
What is the future outlook for Suzlon?
Suzlon has a bright future with lots of new orders, supportive government policies, and high growth expectations. Many brokerage firms have given Suzlon a ‘Buy’ rating.
