Suzlon shares: Geojit upgrade the stock; sees up to 30% upside potential
Brokerage firm Geojit Investment has upgraded its rating on Suzlon Energy and sees up to 30 per cent upside in the stock, despite the execution challenges.
- Aug 22, 2025,
- Updated Aug 22, 2025 8:37 AM IST
Brokerage firm Geojit Investment has upgraded its rating on Suzlon Energy and sees up to 30 per cent upside in the stock, despite the execution challenges. However, the brokerage has marginally trimmed its target price and lowered its valuation multiple on the counter in the latest report.
Suzlon began FY26 on a strong note, with higher capacity utilization driving improved margins in the wind turbine segment, said Geojit. "Backed by a robust 5.7 GW order book, we project a 42 per cent CAGR in revenue over FY25–27E, supported by management’s guidance and strong delivery momentum," it said.
Shares of Suzlon Energy had settled at Rs 58.17 on Thursday, falling nearly 3 per cent. The total market capitalization of the company has slipped below Rs 80,000 crore. The stock is down 12 per cent on a month-to-date basis, while it has tumbled nearly 33 per cent from its 52-week high at Rs 86.04, hit in September 2024.
Enhanced utilization is expected to unlock volume leverage, leading to a 117 bps margin expansion, primarily from the WTG and forging businesses. With earnings forecasted to grow at 43 per cent CAGR and ROE rising to 27.1 per cent by FY27E, the stock appears undervalued at 27.7 times FY27 EPS, the brokerage firm said.
Suzlon Energy reported a 7.3 per cent YoY growth in the net profit at Rs 324.3 crore, while revenue increased 55 per cent YoY to Rs 3,131.7 crore for the June 2025 quarter. The wind energy player clocked a 62.4 per cent YoY surge in Ebitda to Rs 598.2 crore, while Ebitda margins improved to 19.1 per cent for the quarter.
Geojit noted that higher capacity utilization in the WTG and forging business, led to stronger operating leverage. The Wind Turbine Generator (WTG) segment reported a strong performance, delivering 444 MW, marking a 62 per cent YoY increase in June 2025 quarter. Suzlon’s share in Forging rose from 40 per cent to 62 per cent, driven by strong order execution, it said.
"Suzlon’s ALMM compliance and backward integration offer a strong competitive moat, but sustaining margin discipline remains key to preserving pricing power. Factoring in execution risks, we revise our valuation multiple to 35 times (from 38 times earlier) FY27E EPS of Rs 2.2 to arrive at a target price of Rs 75 (from Rs 77), upgrading our rating to a 'buy' recommendation," Geojit said.
In its recent report, ICICI Securities said that Suzlon has been delivering strong performance over the last few quarters. It accumulated orders worth 1GW in Q1. "Its order book stands at an impressive 5.7GW. We expect the order pipeline to be strong over the next 2–3 years," said ICICI Securities, with a 'buy' with a target price of Rs 76. Alike Geojit, it also sees a 30 per cent rise. ICICI Securities said that Suzlon had a very good FY25, wherein it: bagged wind turbine orders worth 3.6GW – its order book (OB) swelled to over 5GW; entered PSU orders, potentially opening the door for further penetration in the fast-growing PSU segment; and doubled down on execution, delivering more than 1.5GW wind turbines. It guides for 60 per cent growth in FY26.
Brokerage firm Geojit Investment has upgraded its rating on Suzlon Energy and sees up to 30 per cent upside in the stock, despite the execution challenges. However, the brokerage has marginally trimmed its target price and lowered its valuation multiple on the counter in the latest report.
Suzlon began FY26 on a strong note, with higher capacity utilization driving improved margins in the wind turbine segment, said Geojit. "Backed by a robust 5.7 GW order book, we project a 42 per cent CAGR in revenue over FY25–27E, supported by management’s guidance and strong delivery momentum," it said.
Shares of Suzlon Energy had settled at Rs 58.17 on Thursday, falling nearly 3 per cent. The total market capitalization of the company has slipped below Rs 80,000 crore. The stock is down 12 per cent on a month-to-date basis, while it has tumbled nearly 33 per cent from its 52-week high at Rs 86.04, hit in September 2024.
Enhanced utilization is expected to unlock volume leverage, leading to a 117 bps margin expansion, primarily from the WTG and forging businesses. With earnings forecasted to grow at 43 per cent CAGR and ROE rising to 27.1 per cent by FY27E, the stock appears undervalued at 27.7 times FY27 EPS, the brokerage firm said.
Suzlon Energy reported a 7.3 per cent YoY growth in the net profit at Rs 324.3 crore, while revenue increased 55 per cent YoY to Rs 3,131.7 crore for the June 2025 quarter. The wind energy player clocked a 62.4 per cent YoY surge in Ebitda to Rs 598.2 crore, while Ebitda margins improved to 19.1 per cent for the quarter.
Geojit noted that higher capacity utilization in the WTG and forging business, led to stronger operating leverage. The Wind Turbine Generator (WTG) segment reported a strong performance, delivering 444 MW, marking a 62 per cent YoY increase in June 2025 quarter. Suzlon’s share in Forging rose from 40 per cent to 62 per cent, driven by strong order execution, it said.
"Suzlon’s ALMM compliance and backward integration offer a strong competitive moat, but sustaining margin discipline remains key to preserving pricing power. Factoring in execution risks, we revise our valuation multiple to 35 times (from 38 times earlier) FY27E EPS of Rs 2.2 to arrive at a target price of Rs 75 (from Rs 77), upgrading our rating to a 'buy' recommendation," Geojit said.
In its recent report, ICICI Securities said that Suzlon has been delivering strong performance over the last few quarters. It accumulated orders worth 1GW in Q1. "Its order book stands at an impressive 5.7GW. We expect the order pipeline to be strong over the next 2–3 years," said ICICI Securities, with a 'buy' with a target price of Rs 76. Alike Geojit, it also sees a 30 per cent rise. ICICI Securities said that Suzlon had a very good FY25, wherein it: bagged wind turbine orders worth 3.6GW – its order book (OB) swelled to over 5GW; entered PSU orders, potentially opening the door for further penetration in the fast-growing PSU segment; and doubled down on execution, delivering more than 1.5GW wind turbines. It guides for 60 per cent growth in FY26.