Loading...
Category

Stock

Home >> Blog >> Suzlon Energy Fundamental Analysis: A Complete Investor's Guide

Suzlon Energy Fundamental Analysis: A Complete Investor's Guide

  


Introduction

Have you been keeping an eye on Suzlon Energy, the wind energy company that delivered an astounding 390% return in just seven months? In this detailed analysis, we will dissect Suzlon Energy's most recent quarterly report to provide you with a comprehensive understanding of the company's operational performance, financial health, and the broader implications for your investment portfolio.

 

Getting Acquainted with Suzlon Energy

Suzlon Energy is a renowned company specializing in the production of wind turbine generators and related components required for harnessing wind energy and generating electricity. Their business operations span four core segments, including transformer manufacturing, generator production, tower fabrication, and rotor blade and panel manufacturing.

 

Exploring the Renewable Energy Landscape

Before we delve into the nitty-gritty details, let's first gain insight into the larger renewable energy sector. In India, the shift towards renewable energy sources, such as wind and solar power, is significantly altering the energy landscape. Suzlon Energy, being a prominent player in the wind power domain, is poised to benefit from this transition.

 

Detailed Video

 

 

Unveiling Suzlon's Strengths

Suzlon Energy boasts a substantial portfolio with a commanding wind energy capacity of 20.3 GW, representing a noteworthy 32% market share in India. With a global workforce exceeding 6,000 employees, Suzlon is equipped with an in-house research and development team, solidifying its reputation as India's leading original equipment manufacturer in the renewable energy sector. The company holds a track record of 28 years in the industry, a testament to its experience and expertise.

 

Clientele and Industry Standing

The impressive list of clients associated with Suzlon Energy includes renowned names like ACC, Adani, Aditya Birla, AHL, GAIL, Bajaj, BlackRock, Brookfield, Clearway, ONGC, TATA, Reliance, and many others. This extensive client base is indicative of Suzlon's established standing in the industry.

 

Orders and Growth Prospects

An essential aspect of evaluating a company's performance is examining its order book. Suzlon Energy has been consistently securing orders, demonstrating a positive trend. Currently, the company maintains an order book with a capacity of 1,613 MW. A substantial portion of this order book is anticipated to be fulfilled in the coming quarters.

 

Financial Health Assessment

An in-depth assessment of a company's financials is crucial for making informed investment decisions. Suzlon Energy's revenue exhibited a consistent upward trajectory until FY22, but it faced a decline of 8.78% in FY23. However, it's noteworthy that the half-yearly revenue for FY23 witnessed a substantial 52.78% decrease. Subsequently, the anticipated revenue for the next six months stands at 2,765 crore. This results in a trailing 12-month total revenue of 5,573 crore, indicating a 6.28% reduction compared to FY23 levels.

Turning our attention to the company's debt, Suzlon Energy has made remarkable progress. Between FY20 and November 2, 2023, the company has significantly reduced its debt from 13,137 crore to 121 crore, marking a nearly 99% reduction. This achievement highlights the company's commitment to debt reduction and financial stability. Furthermore, the company's net worth increased from -3,526 crore in March 2022 to 3,409 crore as of September 2023.

 

Ownership Structure

Suzlon Energy's ownership is structured as follows: Promoters hold 13.28%, Foreign Institutional Investors (FIIs) hold 10.88%, Domestic Institutional Investors (DIIs) hold 9.81%, the government holds 0.02%, and the public holds the majority share at 65.99%. Notably, out of the 180 crore shares held by promoters, 146 crore shares (81.11%) were pledged. However, on September 28, 2023, Suzlon successfully unpledged 97.1 crore shares, signifying a positive development for the company.

 

Valuation Analysis

Assessing the company's valuation is essential to determine whether the stock is overpriced or underpriced. As of the latest available data, Suzlon Energy's Price-to-Earnings (PE) ratio stands at 125, while the industry's PE ratio is 43.90. Additionally, the Price/Earnings to Growth (PEG) ratio is 7.30. These valuation metrics suggest that Suzlon Energy's stock may be currently overpriced compared to industry peers.

 

In Conclusion

In conclusion, our thorough analysis of Suzlon Energy's latest quarterly report reveals several strengths, including an impressive client portfolio and a consistent influx of orders. The company's efforts in reducing debt have positively impacted its financial health. However, revenue decline and the relatively high stock valuation warrant close attention.

As an investor, staying well-informed about the company's performance and industry trends is paramount. Suzlon Energy has embarked on an exciting journey, and keeping an eye on its future developments is essential. Understanding how to interpret quarterly reports empowers you to make informed investment decisions.

Whether you are already a Suzlon Energy shareholder or contemplating an investment, maintaining vigilance and staying updated is the key to investment success. Stay tuned for further updates, and don't hesitate to share your thoughts on Suzlon Energy's current stock price in the comments below.

 

 





Liked What You Just Read? Share this Post:




Viewer's Thoughts

Chandrakant Patil | Posted on 08/11/2023

Excellent

Singh | Posted on 08/11/2023

Bahut hi achha Liya tha par bech Diya ab pachhata rha hu .q becha

Ravindra patil | Posted on 08/11/2023

Really unbelievable progress. Holding the shares since last 5 years. But have confidence one day or other good days will come. Now I am in 37℅ profit.

Any Question or Suggestion

Post your Thoughts


Stock

Related Blogs

How to Identify Multibagger Penny Stocks

Stock | 21-06- 2024

How to identify Multi-bagger P...

Explore multi-bagger penny stocks, their characteristics & key strategies for identifying high-growth opportunities in t...

Continue Reading
Top 5 Sugar Stocks in India

Stock | 20-06- 2024

Top 5 Sugar Stocks in India 20...

Explore India's top 5 sugar stocks to invest in for 2024. Understand the growth and challenges of the Indian sugar indus...

Continue Reading
Top 5 PSU Bank Stocks in India 2024 for Long-term Investment

Stock | 20-06- 2024

Top 5 PSU Bank Stocks in India...

Discover the top 5 PSU Banks Stocks in India for 2024. Their financial performance & growth prospects for long-term inv...

Continue Reading
Top 5 Stock Benefited from Railway Kavach System Manufacturing

Stock | 19-06- 2024

Top 5 Stocks Benefited from Ra...

Kavach Revolutionizes Indian railways with safety & efficiency. Here are Top 5 railway stocks that can be benefited from...

Continue Reading
Top 5 Cement Stocks in India

Stock | 19-06- 2024

Top 5 Cement Stocks to Invest ...

Discover India's top 5 cement stocks to invest in for 2024. Learn about the leading companies. their market performance ...

Continue Reading
Top 5 Defence Stocks in India

Stock | 18-06- 2024

Top 5 Defence Stocks Benefited...

BJP Begins its 3rd Term as Govt. of India & Rajnath Singh continues as Defence Minister. Looking at his recent speech he...

Continue Reading
to Learn Important Strategy worth Rs.15000