Suzlon shares slip 30% from 52-week high despite upbeat Q2 performance

Suzlon Energy banal gains momentum; beardown Q2 results substance optimism

Shares of Suzlon Energy soared implicit 5 per cent connected Tuesday, hitting the precocious circuit and closing astatine Rs 62.22. Despite being astir 30 per cent beneath its 52-week precocious of Rs 86.04, analysts presumption this dip arsenic a strategical introduction constituent for semipermanent investors, fixed Suzlon's robust fiscal show and maturation outlook.

Q2 FY25: Record-breaking performance

Suzlon reported a singular 2nd 4th for FY25, with consolidated revenues surging 48 per cent year-on-year (YoY). The institution delivered 256 MW of upwind turbine generators (WTGs) during the quarter, reflecting a staggering 94 per cent YoY growth, marking its champion second-quarter transportation successful 7 years.

• WTG revenues grew 72 percent YoY to Rs 1,507 crore.
• Operations and Maintenance Services (OMS) revenues accrued 18 per cent YoY to Rs 565.5 crore.
• EBITDA roseate by 31 per cent YoY to Rs 294 crore.
• Adjusted PAT climbed to Rs 201 crore, a 46 per cent YoY improvement.

Balance expanse resilience

Suzlon's equilibrium expanse remains strong, with nett currency of Rs 1,277 crore pursuing the consolidation of Renom Energy, its work concern subsidiary.

Analyst recommendations

Geojit Financial Services Limited has pegged Suzlon’s banal worth astatine Rs 68, citing:

• An anticipated 67 percent CAGR successful WTG deliveries betwixt FY24 and FY27.
• Projected 61 per cent CAGR successful net per stock (EPS) during the aforesaid period.
• Expected instrumentality connected equity (ROE) of 25 per cent by FY27.

Investment outlook

With a beardown operational show and affirmative maturation indicators, Suzlon Energy is positioned arsenic a promising semipermanent concern successful the renewable vigor sector. Market experts urge the existent dip arsenic an accidental for accumulation, fixed the company’s coagulated financials and ambitious maturation trajectory.