Suzlon Shares Extend Losses After Q4, But Analysts Remain Bullish

Suzlon‘s shares extended losses to the third straight session on Tuesday going down 4% to hit an intraday low of ₹43.40.

What Happened: The wind energy major reported a net profit of ₹254 crore for the March quarter, representing a decline of approximately 9% compared to the ₹280 crore posted in the same quarter last year. However, revenue from operations for the quarter increased by around 29%, reaching ₹2,179 crore, up from ₹1,690 crore in the corresponding quarter of the previous year.

Analysts Remain Bullish: Most analysts remained bullish on the energy player. Anand Rathi maintained its “buy” rating for the stock with a price target of ₹58. The target indicates an around 30% upside from the stock’s current market price of around ₹44 per share. The domestic brokerage firm said that the company reported strong Q4 EBITDA and net profit, beating its estimates.

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ICICI Securities also maintained its “buy” rating for the stock raising the target price to ₹54 from ₹48. The brokerage firm said that Suzlon has improved its financial health after a challenging decade. The company has successfully reduced its debt from ₹12,000 crore in FY20 to zero in FY24 through various debt-to-equity conversions.

The analysts also said that the favourable regulatory changes and positive developments in the wind industry are expected to benefit Suzlon Energy, positioning it as a key beneficiary due to its market leadership in the wind turbine sector.

JM Financial also maintained its “buy” rating for the stock with a price target of ₹54. The brokerage said the company has a healthy order book and a strong bid pipeline. It also highlighted the fact that the company has been strengthening its balance sheet.

Price Action: Suzlon’s share price was down 1% to trade at ₹44.75 in early trade on Tuesday.

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