The share is now being traded among all eight of its important simple advanced averages, which are mapped for 5 days to 200 days, whereby the bearish sentiment is underlined over short and long-term horizon. The relative strength index stands at 35.4, close to the sold -up area, while the moving average convergence -diversity at -0.9 remains under both middle and signal lines, which enhances the weakness.
Q1 results weigh on sentiment
The consolidated net profit of Suzlon in June quarter increased by 7% on an annual basis to RS 324 Crore, but missed estimates due to a deferred taxation of RS 134 Crore. Turnover increased by 55% to RS 3,117 Crore, driven by higher turbine volumes, and EBITDA rose by 62% to RS 599 Crore with margins that grew to 19.2%. The company’s orderbook grew for a 10th consecutive quarter, getting up with another 1GW.
Investors’ concern becomes deeper after Suzlon said that Group CFO Himanshu Mody will resign on August 31, with a successor who will soon be mentioned.
Brokers remain divided
Brokers weigh quickly after the Q1 results from Suzlon, with three of the four major research houses that maintain Bullish Calls despite the recent correction.
Motilal Oswal again confirmed his ‘buy’ rating and brought a target price of RS 80. The brokerage quoted “strong version at 444 MW” in Q1, a Jump-on year of 62%, along with a healthy 19% EBITDA margin. Power and improving the realizations of per MW supported the positive representation. Icici effects repeated that optimism and retained a ‘Koop’ call with an RS 76 target white. The brokerage noted that Suzlon’s “highest Q1 version ever” and pointed to the 5.7GW order book, about 3.7 times FY25 version levels, as a great strength. It emphasized the domestic sourcing mandate of the government for wind components as a structural benefit for Suzlon, given the approximately 40% market share. JM Financial also remained Bullish and repeated a ‘Buy’ rating with an RS 78 alignment price. It has credited the operational leverage for the margin improvement of the company, whereby the EBIT -Marge of the wind turbine armor segment expanded to 15% of 10% a year earlier.
The brokerage, however, warned that although deliveries have been strong, the installations have been left behind in the past quarters.
Nuvama Institutional shares found a more careful note. It held a ‘hold’ rating and limited its target to RS 67, referring to a weaker EPC mix that affects the realizations. The brokerage also marked the resignation of CFO Himanshu Mody as a potential negative in the short term, and emphasized that he played a key role in Suzlon’s turnaround.
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Outlook anchored in the domestic demand
Suzlon continues to supervise for a 60% growth in deliveries, turnover and EBITDA in FY26. Brokers expect the company to benefit from the target capacity of India’s 122 GW by FY32 and a growing commercial and industrial segment that may require 78 GW by FY30.
Follow-up challenges on land and grid-connectivity continue to exist, but Bullish calls on the dominant domestic market share of Suzlon, cost efficiency and a swelling pipeline.
Read also | Suzlon Energy Q1 Results: Cons Pat jumps 7% yoj to RS 324 Crore; The turnover increases 55%
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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