Domestic brokerage firm Anand Rathi Shares & Stock Brokers continued to remain positive on Suzlon Energy as it sees the company being well-positioned and gearing up for better opportunities. The homegrown brokerage firm has reiterated its ‘buy’ rating on the stock after its recent plant visit and has increased the target price as well.
“We visited Suzlon’s Daman plant, which manufactures nacelles for wind turbines. Started in 2004, the plant contributed to over 60 per cent of the more than 20GW turbines supplied globally,” said Anand Rathi. India’s wind capacity installations are set to rise to 8-9GW by FY27, it said.
Over the last two decades, the Daman plant was instrumental in over 60 per cent of the more than 20GW wind turbines supplied globally. With a 2.7GW rated capacity, the plant’s turbine capacity rose to 3.1MW.
Suzlon plans to expand its Daman capacity in near future to capitalise on the mounting demand and restart the similar-sized Pondicherry in a phased manner based on the demand scenario and utilisation. In FY26, it plans to automate its plant to shorten the turnaround time and raise safety standards, the brokerage report said.
Shares of Suzlon Energy Ltd rebounded 3 per cent from day’s low at Rs 53.50 to Rs 55.14 on Monday, with its total market capitalization hovering near Rs 75,000 crore mark. The stock had settled at Rs 54.54 in the previous trading session on Friday.
“We understand the company is well placed to be a beneficiary of rising demand from utilities and the C&I segment. We factor in 1.5 and 2.2GW deliveries for FY25 and FY26,, and reiterate ‘buy’ rating, at 35 times FY26e PE,” it said with revised target price of Rs 58 from Rs 55. It sees adverse government policies, slower-than-expected pick-up in WTGs, keener competition as key risks.
Anand Rathi Shares & Stock Brokers expects a strong performance by Suzlon Energy on the back because of more wind-turbine deliveries during the June 2024 quarter, leading to better profits aided by operating leverage. Suzlon Energy remains among the top picks by Anand Rathi.
The brokerage firm expects Suzlon to report a revenue of Rs 2,431.6 crore, surging 80 per cent YoY and 10.7 per cent QoQ. Ebitda margins may come in at 16.8 per cent, which was 16.3 per cent in the year ago period. Adjusted net profit is seen at Rs 325.2 crore, zooming 222.5 per cent YoY and 14.6 per cent QoQ.
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