Suzlon Energy Ltd (SUZLON) Share Price Target 2024, 2025, 2027, 2030, 2040: A Comprehensive Analysis

Introduction

In the dynamic world of renewable energy, Suzlon Energy Ltd stands out as a pioneering force in the wind energy sector. As global demand for clean and sustainable energy sources continues to rise, Suzlon’s role in the renewable energy landscape becomes increasingly critical. This blog delves into Suzlon Energy Ltd (SUZLON) Share Price Target for 2024, 2025, 2027, 2030, and 2040, providing investors with insights into the company’s growth prospects, financial performance, and potential returns on investment over the long term. As part of our analysis, we’ll also touch upon related topics, such as Reliance Power share price, NSE RPOWER, and the broader stock market forecast for the renewable energy sector.

What Is Suzlon Energy Ltd?

Suzlon Energy Ltd is a leading renewable energy company that specializes in the production of wind turbines and the generation of wind power. Established in 1995 and headquartered in Pune, India, Suzlon has grown into a multinational corporation with a significant presence in over 17 countries, including Asia, Africa, Australia, and Europe. With a portfolio of more than 11,000 wind turbines installed globally, Suzlon is a key player in the wind energy sector, contributing significantly to the clean energy projects worldwide.

Overview of Suzlon Energy Ltd

Founded by Tulsi Tanti, a visionary Gujarati entrepreneur, Suzlon Energy Ltd initially started as a textile company. However, recognizing the potential of renewable energy, the company transitioned into wind turbine manufacturing and expanded its operations to include the installation and maintenance of wind energy projects. By 2003, Suzlon had secured its position as a leading supplier of wind turbines in several countries. The company’s growth trajectory has been marked by its commitment to innovation, sustainability, and expanding its global footprint, which aligns with the increasing global reliance on coal and other traditional energy sources for electricity production.

Economic Details of Suzlon Energy

As a trading stock on the Indian stock market, Suzlon Energy Ltd has demonstrated significant growth in net profit, reflecting the company’s robust financial performance. Below are some key economic details of Suzlon Energy:

Annual Performance of Suzlon Energy

Before making any investment decisions, it’s crucial to assess the annual performance of the company. This includes analyzing key financial ratios such as the Price to Earnings (PE) ratio, Return on Assets (ROA), Current Ratio, and Debt to Equity Ratio. These metrics provide valuable insights into the company’s financial health and its potential for future growth.

• PE Ratio (Price to Earning Ratio): The PE ratio is a key indicator of how much investors are willing to pay for each unit of earnings. Suzlon Energy Ltd has a PE ratio of 797.20, which indicates that the stock may be undervalued compared to its earnings potential.
• Return on Assets (ROA): ROA measures a company’s ability to generate profit from its assets. Suzlon Energy Ltd boasts an impressive ROA of 36.91%, signifying efficient asset utilization and strong profitability.
• Current Ratio: The current ratio, calculated as Current Assets divided by Current Liabilities, provides insights into the company’s liquidity. Suzlon Energy Ltd has a current ratio of 0.84, indicating that its current liabilities slightly exceed its current assets.
• Debt to Equity Ratio: This ratio measures the proportion of debt used to finance the company’s assets relative to equity. Suzlon Energy Ltd has a Debt to Equity Ratio of 1.74, suggesting a higher reliance on debt financing.

Suzlon Energy Ltd (SUZLON) Share Price Target 2024 to 2040

Suzlon Energy Ltd is a major player in the renewable energy sector, particularly in wind power. With over 100 wind farms across India and a combined production capacity of 12,650 MW, Suzlon is well-positioned for future growth. The company’s ongoing investments in new projects, including wind and solar energy, are expected to drive significant increases in both revenue and share price over the coming years.

Suzlon Energy Ltd Share Price Target 2024

Suzlon Energy Ltd’s focus on renewable energy positions it as a key player in the global energy transition. The Indian government’s push for clean energy, coupled with Suzlon’s strong market presence, is expected to drive significant growth in the company’s share price. For the year 2024, the 1st price target for Suzlon shares is ₹50.23, with a 2nd target of ₹60.69. These targets reflect the company’s potential to capitalize on the increasing demand for wind energy and its strong market position.

SUZLON Share Price Target 2025

By 2025, Suzlon Energy Ltd is expected to benefit from continued growth in the renewable energy sector. The company’s ability to attract both domestic and foreign institutional investors (FII) underscores its strong growth potential. With a promoter holding of 14.56% and significant interest from foreign investors, Suzlon’s share price is poised for further gains. The 1st price target for 2025 is ₹67.25, with a 2nd target of ₹75.85.

SUZLON Share Price Target 2026

As Suzlon continues to expand its operations and enhance its financial performance, the company’s share price is expected to see significant gains by 2026. The introduction of new wind turbine models and the company’s focus on reducing production costs are key factors driving this growth. Based on expert analysis, the 1st price target for 2026 is ₹90.78, with a 2nd target of ₹110.58.

SUZLON Share Price Target 2027

The year 2027 marks a critical point in Suzlon Energy Ltd’s growth trajectory. The company’s strong profit growth and revenue expansion over the past three years, coupled with its focus on innovation and technological advancements, position it for continued success. With a profit growth rate of 39.25% over the last three years and revenue growth of 112.25%, Suzlon’s share price is expected to reach ₹125.74 (1st target) and ₹150.56 (2nd target) by 2027.

SUZLON Share Price Target 2030

Looking ahead to 2030, Suzlon Energy Ltd’s prospects remain strong, driven by the increasing demand for green energy and the company’s ongoing efforts to improve its financial health. Despite challenges related to debt and cash flow, Suzlon’s management is focused on enhancing the company’s financial stability and driving long-term growth. The 1st price target for 2030 is ₹270.56, with a 2nd target of ₹290.56.

SUZLON Share Price Target 2040

By 2040, Suzlon Energy Ltd is expected to solidify its position as a global leader in the renewable energy sector. The company’s continued focus on innovation, expansion into new markets, and commitment to sustainability will drive significant growth in both revenue and share price. As a result, Suzlon’s share price is projected to reach ₹470.25 (1st target) and ₹480.12 (2nd target) by 2040.

Investors Types and Ratios of Suzlon Energy Ltd

Understanding the composition of Suzlon Energy Ltd’s investors is crucial for assessing the company’s market position and growth potential. The following table provides a breakdown of the key investor types and their respective holdings:

Promoters Holding

Promoters, or the owners of the company, hold 14.15% of Suzlon Energy Ltd’s capital. This level of promoter holding reflects the confidence of the company’s founders in its future growth prospects.

Public Holding

Public investors, including individual retail investors, hold the majority stake in Suzlon Energy Ltd, with a 64.15% share. This high level of public interest indicates widespread confidence in the company’s long-term potential.

Foreign Institutional Investors (FII)

Foreign Institutional Investors (FIIs), which include large multinational corporations, hold a 13.69% stake in Suzlon Energy Ltd. This indicates strong international interest in the company’s growth potential.

Domestic Institutional Investors (DII)

Domestic Institutional Investors (DIIs), including insurance companies, mutual funds, and pension funds, hold an 8.01% stake in Suzlon Energy Ltd. This stake reflects the confidence of domestic institutions in the company’s financial health and long-term growth potential. DIIs play a crucial role in stabilizing the stock price by providing consistent support through their investments. Their participation underscores Suzlon’s credibility in the domestic market, where investors often seek companies with strong fundamentals and growth prospects.

Advantages and Disadvantages of Investing in Suzlon Energy Ltd

Investing in any company comes with its set of pros and cons, and Suzlon Energy Ltd is no exception. Below, we outline some of the key advantages and disadvantages of investing in Suzlon:

Advantages

1. Strong Position in Renewable Energy: Suzlon is a leading player in the renewable energy sector, particularly in wind energy. As the world transitions towards cleaner energy sources, Suzlon’s market position provides a significant growth opportunity.
2. Global Presence: Suzlon has a diversified international portfolio, with operations in multiple countries. This global footprint allows the company to mitigate risks associated with any single market and tap into emerging markets with high growth potential.
3. Innovation and Technological Expertise: Suzlon’s commitment to innovation is evident in its continuous development of more efficient and cost-effective wind turbines. The company’s R&D efforts enhance its competitive edge in the market.
4. Government Support for Renewable Energy: The Indian government’s push for renewable energy offers Suzlon significant growth opportunities, including incentives, subsidies, and favorable policies aimed at expanding the renewable energy sector.
5. Long-term Growth Potential: With the increasing global emphasis on sustainable energy, Suzlon’s long-term growth potential is strong. The company’s plans for expansion and new project developments are likely to drive revenue growth and enhance shareholder value.

Disadvantages

1. High Debt Levels: Suzlon Energy Ltd has a relatively high debt-to-equity ratio, which could pose risks in terms of financial stability. High debt levels can lead to increased interest expenses and pressure on profit margins, especially if revenue growth does not keep pace.
2. Volatility in Share Price: The stock price of Suzlon has been known to exhibit significant volatility, which can be a concern for investors seeking stable returns. Market conditions, economic factors, and sector-specific developments can all impact the stock’s performance.
3. Dependence on Government Policies: While government support is a significant advantage, Suzlon’s reliance on favorable policies and subsidies could become a disadvantage if there are changes in government priorities or regulatory frameworks.
4. Competition: The renewable energy sector is highly competitive, with several well-established players globally. Suzlon faces competition from both domestic and international companies, which could impact its market share and profitability.
5. Execution Risks: Suzlon’s ambitious growth plans and global expansion efforts come with execution risks. Any delays or challenges in project execution could affect the company’s financial performance and investor confidence.

Also Read: SJVN Share Price Target for 2024, 2025, 2027, 2030, and 2040

FAQ’s

Conclusion

Suzlon Energy Ltd presents a compelling investment opportunity in the renewable energy sector, particularly for those looking to capitalize on the global shift towards sustainable energy. The company’s strong market position, technological innovation, and growth prospects make it an attractive option for investors. However, potential investors should also consider the associated risks, including high debt levels and market volatility.

For those with a long-term investment horizon, Suzlon’s focus on expanding its global footprint and enhancing its financial health offers promising returns. As always, it is essential to conduct thorough research and consider one’s risk tolerance before making any investment decisions.

Disclaimer: This blog is for educational purposes only and should not be considered as financial advice. Always consult with a SEBI-registered advisor before making any investment decisions.