Suzlon Energy’s Stock Takes a Hit Despite Being a Multibagger
Suzlon Energy’s share price has fallen 16% in 2025 so far, despite being one of the most buzzing multibagger stocks. Over the long run, the stock has been a multibagger, delivering returns of over 33% in the past year. In March 2020, the stock traded around Rs 1.90, but it has consistently held over the Rs 50 mark in the near term.
Analysts’ Take on Suzlon Energy
Brokerage Houses’ Recommendations:
- Motilal Oswal: Sees a 21% upside from current levels, with a target price of Rs 70 per equity share. The company’s valuations have come down. However, healthy earnings support its value. The growth trajectory and strong order book enhance its value. A positive outlook for the industry further supports its value.
- JM Financial Services: Maintains a Buy call on Suzlon. The target is Rs 71 per equity share. This implies a 24% upside. Suzlon’s initiatives to enhance capabilities and expansion plans are seen as positives.
Key Highlights
- Earnings Per Share (EPS) Growth: Suzlon Energy has an estimated EPS growth of 63% over FY24-FY27. This growth rate outpaces peers like ABB at 23%, Siemens at 20%, and Thermax at 17%.
- Price-to-Earnings Growth (PEG) Ratio: Suzlon is trading at a PEG ratio of 0.6 times for FY26, below domestic peers like Thermax (2.5x), ABB India (6x), and CG Power (1.9x).
- Market Share: Suzlon holds a 31% cumulative market share in India’s wind energy sector. They have an installed base of 15 GW.
Future Prospects
Suzlon Energy is poised for growth, driven by increasing demand for clean energy and its strong market position. According to predictions, the stock’s price target could be:
- 2025: Rs 38.54 to Rs 89.45
- 2030: Rs 170 to Rs 270
- 2040: Rs 380 to Rs 556
- 2050: Rs 780 to Rs 980
Given the current trends and analyst recommendations, Suzlon Energy might still be a ‘Buy’ at current levels. This is due to its growth prospects and strong market position.
