Suzlon Energy Stock Analysis 2025: Risky or Rewarding?

Suzlon Energy Stock Analysis reveals a remarkable turnaround story. Once burdened by bankruptcy and heavy debt, Suzlon Energy has quietly re-emerged as a fundamentally strong company. Two years ago, the stock traded at ₹10, its average weekly volume was around ₹130 crores. In 2024, when it reached ₹66, it was trading at ₹70 crores per week, reflecting reduced investor interest.

This is what smart investors look for, good companies that most people are no longer interested in. Suzlon Energy represents one of India's most remarkable turnaround stories, transforming from a fundamentally weak business to a fundamentally strong one.

Technical Breakout Pattern

There are different kinds of patterns available but for now in Suzlon Energy Stock Analysis, we are gonna know about the technical breakout pattern.

The Cup and Handle Formation

Looking at Suzlon’s weekly candlestick chart, we can see an almost-formed Cup and Handle pattern. While not perfectly shaped yet, this pattern suggests a potential breakout above ₹72 which is the key resistance level. If this breakout sustains, the stock could quickly move towards its previous all time high of ₹85.

Inverse Head and Shoulders Pattern

Adding strength to the bullish case is an Inverse Head and Shoulders pattern, though it’s at a slight angle. The remarkable coincidence is that both patterns have the same breakout point at ₹72. That’s a strong technical convergence. If the stock crosses this level, we might see strong momentum building up.

Short-Term Trend and Momentum

Let’s see daily chart insights as well as some technical indicators to understand short-term trend : 

Daily Chart Insights

The daily chart reveals that Suzlon broke out of its downtrend around mid February and has been in a steady uptrend since. This uptrend remains intact, and if it continues, the stock could reach its all time high by November end that coincides with Q2 results.

Technical Indicators

There are many kind of technical indicators, let’s see some of them : 

• Weekly MACD: Provide a strong buy signal when stock was in the 50s.

• Weekly RSI: Around 50 (Middle Point), gaining momentum - neither oversold nor overbought.
• Golden Cross: Formed in late May the 50-day moving average crossed above the 200-day moving average, indicating strong long-term bullish momentum.

All Technical Indicators are strongly positive, supporting the bullish thesis.

Financial Health

Now in Suzlon Energy Stock Analysis, let's know about companies financial health : 

Revenue and Profitability

Suzlon has shown decent revenue growth over the past 5 yrs. Though not consistently. It has remained profitable for the last 3 yrs. With improving margins and 12 straight quarters of profits.

Debt Management

Metric	Details
Current Debt	₹300 crore
Debt to Equity Ratio	0.05
Debt in FY20	₹13,000 crore

This dramatic debt reduction is a cornerstone of Suzlon’s turnaround story. While the company had to sell some assets to reduce debt, the balance sheet is now stress-free, and the company has returned to its growth trajectory.

Future Revenue Sustainability

Management’s Confidence

Suzlon’s management has expressed confidence in growing revenue by 60% in FY26. If this occurs, the current PE ratio of 44 would make the stock fairly valued or even slightly undervalued, assuming profit growth of at least 40%.

Strong Order Book Foundation

This confidence stems from:

• 5.5 GW order book: Providing 2+ years of revenue visibility.
• Diversified clientele: 26% from public sector companies
• Continuous pipeline: New orders expected to strengthen future order books.

Government Wind Energy Target

The govt.’s target of 140 GW wind energy capacity in the next 5 years provides a massive growth opportunity:

• Currently installed : 51 GW
• Remaining target : 90 GW in 5 years
• Required annual addition : 15-18 GW per year
• Last year’s addition : Only 4.2 GW industry-wide

Suzlon’s current order book exceeds India’s entire wind energy addition last year, positioning the company well in this high-growth industry.

Suzlon’s Flagship Product

Suzlon has launched a game changing product which is the S144 Turbine. It is a special 3 MW wind Turbine developed specifically for Indian conditions through extensive R&D. It’s a major upgrade from the older S120 platform with :

• 40-43% higher energy yield,
• Suitable for previous unusable sites,
• Decent energy output in challenging locations,
• Makes up 91% of the 5.5 GW order book

It also showed a multiplication effect in their revenue as it brings in 20 years of operation & maintenance (O&M) revenue, which grows 4–5% annually. This adds a high-margin, stable revenue stream.

If we talk about the future, S144 integrates well with Solar + Wind hybrid projects, a growing trend in the renewable energy sector.

Risk Analysis

Main concern for the co. is their Low Promoter Holding as they currently own just 13% of Suzlon. If we compare it with other companies promoter holding in the industry which are: 

• Inox Wind Energy have 69% promoters
• Waree Engineers holds 65% promoters holding 

Reasons for low promoter holdings 

• 2015 Emergency Funding: ₹1,800 crores raised from Dilip Sanghvi group to save the company.
• Debt management: Gradual stake reduction to manage high debt.
• 2022 leadership change: Sudden death of Chairman Tulsi Tanti.
• Current structure: Shareholding divided among multiple family trusts.

Potential Justifications

• Proven track record: Promoters have successfully run the company for 10 years without majority control, achieving a complete makeover.
• Institutional oversight: Significant FII and DII holdings can prevent poor management decisions.
• Increasing institutional interest: Recent months show FIIs and DIIs regularly increasing their stakes.

Competition from Solar Energy

Wind energy companies compete with solar on cost efficiency:

Category	Details
Solar Energy Bid	₹2.6 per KW
Wind Energy Bid	₹3.8 per KW
2025 Budget Impact	Reduced import duty on solar PV modules

Despite these cost disadvantages, wind energy is crucial for:

• Grid Balancing: Solar peaks during day (zero at night), while wind peaks in evening and early morning
• 24x7 Power Supply: Corporate CPP projects needing continuous power choose Wind + Solar combinations
• Existing Commitments: Existing wind tenders are already underway.
• Technological Advancement: New turbines like S144 help cut costs.

Watch Our Detailed Video on Suzlon Energy Stock Analysis

Market Dynamics

Suzlon is no longer a penny stock. In just 5 years:

• Market Cap grew from ₹1,000 crore to ₹90,000 crore
• Now part of Nifty Midcap index
• Has 56 lakh shareholders, even more than TCS.

But with such wide retail participation comes extreme volatility. A minor news event could lead to major panic selling. So invest with caution and position sizing in mind.

Overseas Business

Currently revenue of Suzlon is Split btw domestic and international i.e.:

• 95% domestically
• 5% internationally

While the export revenue is ₹500 crores from forging division component exports. Over the past 10 years, Suzlon stabilized by exiting loss-making foreign projects and focusing on domestic markets.

Recent management communications suggest:

• Timeline: 2-3 years for overseas focus
• Target: 10-15% of order book from overseas by FY2028
• Impact: Could significantly boost revenue if achieved

Final Take

This investment should be viewed as a calculated risk rather than a guaranteed winner:

• A debt-free company
• Profitable for 3 years straight
• Backed by strong order books
• Positioned in a high-growth industry
• Technically poised for a breakout

That said, low promoter holding, competition from solar, and extreme volatility are serious risks.

Also Check : Copper Industry Analysis 2025

Conclusion

As per our Suzlon Energy Stock Analysis it has transformed from a debt-heavy company to a key player in India’s wind energy sector, backed by improving fundamentals and strong technical. However, risks remain, low promoter holding, high retail-driven volatility, and competition from cheaper solar energy. 

For investors, Suzlon can be a smart addition to a diversified portfolio only with disciplined position sizing and realistic expectations.