Stock to Buy: Brokerage firm Anand Rathi has re-initiated coverage on energy company Suzlon Energy Limited, giving the stock a 'BUY' rating.
The Indian stock market is currently trading in a limited range. While there is momentum in major indices like the Sensex and Nifty, investors' sentiment remains cautious. Uncertainty surrounding Trump tariffs and the anticipation of quarterly results are further adding to this cautiousness. Amidst this, a name from the energy sector has once again come into the limelight - Suzlon Energy Limited. Brokerage firm Anand Rathi has once again shown confidence in this stock, giving it a BUY rating.
Brokerage Sets Target Price of ₹81
According to Anand Rathi brokerage, Suzlon Energy can reach up to ₹81 in the coming time. Currently, the stock is trading around ₹66. Considering this, there is a potential upside of about 23 percent. The brokerage believes that this level is not far off, considering the company's current situation and future strategy.
Debt Reduced, Company Becomes Net Cash Positive
The brokerage report states that Suzlon has significantly reduced its debt in recent years. The company has undergone a strict financial restructuring process, re-establishing itself. As a result, Suzlon now has a net cash position of ₹8300 crore. This figure indicates that the company has now become financially self-reliant and can execute its investment and expansion plans without excessive borrowing.
Order Book and Project Pipeline Remain Strong
Suzlon Energy currently has a b order book. The company is also receiving support from the Indian government's renewable energy policy. According to the report, Suzlon will deliver a large number of turbines in the coming years.
- Estimated delivery in FY2026: 2.5 gigawatts
- Estimated delivery in FY2027: 3.2 gigawatts
These figures make it clear that the company's project pipeline is b and it is set to benefit from many new projects.
More than 1300 percent return in the last five years
Suzlon Energy's stock has performed remarkably well in the past few years.
- Return in 5 years: More than 1300 percent
- Return in 3 years: Around 1000 percent
- Increase in 2 years: 280 percent
- Profit in 1 year: More than 20 percent
- Growth in 6 months: Approximately 20 percent
- Increase in 3 months: 29 percent
- Performance in 1 month: Slight decline, down 3.18 percent
This performance shows that this stock has given excellent returns to investors in the long term.
Journey Between 52-Week High and Low
Suzlon Energy's stock in the last one year
- Upper level: ₹86.04
- Lower level: ₹46
has been trading between. This means that the stock has shown a good jump compared to last year and is currently trading slightly below its high level.
Impact of Green Energy Focused Strategy
Suzlon Energy's main focus is now on green energy. The Indian government is also aiming for a big target in the renewable energy sector by 2030, which is directly benefiting companies like Suzlon. The brokerage report indicates that the company is rapidly moving in this direction and its contribution will increase in the coming years.
Improved Image, Growing Confidence
A company that was once debt-ridden has now become net cash positive. This has improved the company's image among investors and brokerage houses. This is the reason why institutions like Anand Rathi are now restarting coverage on this stock and showing confidence in its future.
Brokerage firms are keeping an eye on this stock
Currently, when Suzlon's share is trading around ₹66, the brokerage firm's target of ₹81 indicates that there is still potential for returns for investors. Considering the past performance and future plans, Suzlon Energy has once again come into the market's focus.
