Suzlon's Future: A Glimpse at Wind and Solar Power Investment

Suzlon Energy is a well-known manufacturer of wind turbines, which has seen significant success in recent times, with its stocks reaching a lifetime high of 86.04 in recent years. Despite current correction to around 62.50, investors with a long-term perspective have taken note of its potential multibagger returns. This article delves into the current market sentiment, future targets, and strategic moves that could influence the stock's trajectory.

Current Market Sentiment

The broader market sentiment currently is not favorable to Suzlon or its peers. Recent months have seen a general correction in stock prices, with Suzlon trading at 62.50. Experts anticipate a further correction to 50, followed by 44 and finally 37–38 in the near term. However, until the stock reaches the 50 level, any potential pullback is not anticipated due to its positive future outlook over the next five years.

Predictive Outlook and Future Targets

During the next five years, Suzlon Energy's stock is forecasted to reach a target range of 140–150. This bullish outlook is based on the company's competitive position in the wind power sector and its potential to innovate in solar power, which is becoming increasingly cost-effective. Analysts predict a 30% improvement in margins within the next year, driven by strategic partnerships and advancements in technology.

Historical Performance and Future Aspirations

Despite recent fluctuations, Suzlon's market performance remains strong. Notable achievements in recent years include securing repeat orders from leading renewable energy IPPs and winning significant projects from esteemed clients such as Hindustan Petroleum Corporation Limited and National Aluminium Company (NALCO). In 2016, the company achieved a 197.40 MW repeat order, marking a significant milestone.

In the fourth quarter of 2017, Suzlon installed 11 GW projects in India and 17 GW overseas, setting new records. Its financial results remain positive, with a net revenue of INR 49999.3 Mn in Q4FY17, registering 54% year-over-year (yoy) and 51% quarter-over-quarter (qoq) growth. Orders totalled 1573 MW from wind and around 109 MW from solar, contributing to a robust EBITDA of INR 7215.7 Mn.

Going forward, the stock is expected to trade at a lower PE multiple of 11, making it an attractive investment opportunity. Analysts use a 29.76 P/E factor of the industry to estimate the stock's long-term potential, with a target price range of 46–49.

Investment Considerations

While the stock shows promising growth potential, it is essential for investors to consult certified financial experts before making any investment decisions. The views and investment tips expressed in this article are the personal opinions of the author and not those of any affiliated website or management.

In conclusion, Suzlon Energy's future is bright, with strategic moves in wind and solar power making it a prime investment opportunity for the next five years and beyond.