ICICI Securities retains Buy on Suzlon Energy, raises target price to Rs 76

ICICI Securities has maintained Buy call on Suzlon Energy with a revised target price of Rs 76 (earlier Rs 68). The current market price of Suzlon Energy is Rs 72.53. Suzlon Energy, incorporated in 1995, is a Small Cap company with a market cap of Rs 97562.14 crore, operating in the Power sector.

Suzlon Energy's key products/revenue segments include Wind Turbine Generator, Property Development, Other Operating Revenue, Scrap, Sale of services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 3825.19 crore, up 27.41% from last quarter Total Income of Rs 3002.36 crore and up 73.29% from last year same quarter Total Income of Rs 2207.43 crore. The company has reported net profit after tax of Rs 1180.98 crore in the latest quarter.

The company's top management includes Mr.Vinod R Tanti, Mr.Girish R Tanti, Mr.Sameer Shah, Mrs.Seemantinee Khot, Mr.Pranav Tanti, Mr.Gautam Doshi, Mr.Per Hornung Pedersen. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 1,365 crore shares outstanding.

Investment Rationale
Suzlon Energy ended FY25 on a high with a strong set of result; in Q4FY25, it reported revenue of Rs 38 billion (+73% YoY), EBITDA of Rs 7 billion (+94% YoY) and adjusted profit of Rs 5.8 billion (~2x YoY) - adjusted for deferred tax of INR 6bn. The strong performance was led by execution of 573MW of wind turbines (2.1x YoY). Its EBITDA margin also improved to 18.3% in Q4 (+200bps YoY); margin for FY25 came in at 17.1% (+130bps YoY) and the company guided for similar margin in FY26. Order inflow (OI) in Q4/FY25 was 0.6GW/3.65GW. As a result, order book (OB) swelled to ~5.6GW at end-May?25 (3.6x FY25 volumes). Outlook for the near to medium-term remains strong and Suzlon is poised well to cash-in on the opportunity with its 4.5GW capacity. Given the strong outlook on OI and execution growth in the medium term, ICICI Securities retains BUY with a revised target price of Rs 76 (earlier Rs 68), valuing the business at 40x FY27E earnings.

Promoter/FII Holdings
Promoters held 13.25 per cent stake in the company as of 31-Mar-2025, while FIIs owned 23.04 per cent, DIIs 6.99 per cent.