Brokerage firm Geojit Financial services has downgraded the rating of India's leading wind energy company Suzlon Energy. They have changed the rating from 'Buy' to 'Accumulate'. However, the brokerage house has increased the target price for this from Rs 71 to Rs 77, which reflects a 17% increase from its previous closing price of Rs 65.67. The reason behind this is the company's excellent performance in the wind turbine business and strong order book, which shows good growth prospects for the company in the coming times.
Geojit trusts the company's order book
Geojit focused on Suzlon's 5.5 GW order book, in which the commercial and industrial segments as well as the PSU segment account for up to 80% of the total order book. Apart from this, the company's major S144 turbine order has about 92% share in the order book. The brokerage firm believes that this will lead to a massive jump of up to 41 per cent in the delivery of wind turbine generators (WTG) from FY25 to FY27. The brokerage expects that during this period, Suzlon's income will also grow at the rate of 38 per cent annually and the return on equity is also expected to increase to 26 per cent.
The company made huge profits in the march quarter
The company's net profit increased to Rs 1,182.22 crore in the march quarter of the financial year 2025, which is much higher than Rs 254.12 crore in the march quarter of last year. The company's revenue from operations also jumped 73 per cent to Rs 3,773.54 crore, from Rs 2,179.20 crore in the march 2024 quarter. The company's net cash position stood at Rs 1,943 crore by the end of FY25, while the consolidated net worth stood at Rs 6,106 crore, which indicates a strong balance sheet of the company. Meanwhile, brokerage house Nuvama Institutional Equities has maintained its rating of 'Hold' on Suzlon.
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