Suzlon Energy – Stock Study & Analysis
Date: 18.09.2025
Current Price: ₹58.86 (~20x above Book Value ₹3.29)
๐ Rating Symbols Key
P – Poor ๐๐ป | G – Good ๐ธ | D – Dividend | B – Buy | S – Sell | HD – Hold ๐
| HH – High ๐๐ป | L – Low ๐๐ป | M – Mean
๐น Company Performance & Dividend
Q1 Result (Announced 12 Aug 2025):
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Sales: ⬆️ +55% ๐ธ Strong revenue growth
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EBITDA: ⬆️ +62% ๐ธ Margin expansion
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Net Profit: ⬆️ +7% ๐ธ Positive but moderate
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EPS: ⬆️ +9% ๐ธ Shareholder value improving
Dividend Policy:
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Dividend: ❌ No payout in FY25
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Announcement: Zero /- per share
Verdict: Strong operational growth, but no dividend distribution, making Suzlon a pure growth play rather than an income stock.
๐น Valuation & Financial Metrics
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52W H/L: ₹85.40 / ₹46.15
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PE: 38.74 (Below sector PE 52.29 → Fair Valued ๐๐ป)
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ROCE: Weak ๐๐ป
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ROE: 33.92% ๐๐ป Strong return on equity
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Book Value: ₹3.29 ๐๐ป Extremely low vs CMP → Highly overvalued
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Face Value: ₹2
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Beta: 1.49 ๐๐ป High volatility → Risky for conservative investors
Forecast Range:
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High: ₹81
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Mean: ₹76
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Low: ₹67
๐น Ownership Pattern (as of Sept 2025)
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FII: 23.03% (↑ from 22.88%)
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DII: 10.17% (↑ from 9.31%)
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Promoter Holding: 11.74% (↓ from 13.25%)
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Promoter Pledge: Zero (Positive sign)
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Institutional Investors (FII+DII): 33.20% (↑ from 32.19%)
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Public: 38.65% (↑ from 38.29%)
Verdict: Rising institutional interest ๐ธ, but declining promoter holding ⚠️ may raise governance concerns.
๐น Piotroski Score
Score: 4/9 ๐๐ป – Weak financial strength despite improved results. Investors must be cautious.
๐น Seasonality & Trading Strategy
Historical monthly patterns (17-year average):
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Best Months to Sell: Apr ๐ธ๐ธ (+8.21%), Oct ๐ธ๐ธ (+6.96%), Dec ๐ธ (+8.66%)
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Best Months to Buy: Feb ๐๐ป๐๐ป (-4.15%), Aug ๐๐ป๐๐ป (-5.44%), Sep ๐๐ป (-4.44%)
Max Profit Strategy:
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Buy in Feb → Sell in April
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Buy in Aug → Sell in October
๐น Final View
Suzlon Energy is a high-volatility growth stock with strong sales momentum and rising institutional participation. However, its very low book value, weak Piotroski score, and zero dividends highlight financial fragility beneath the surface.
✅ Attractive for short-to-mid term traders (seasonality favors swing trades).
⚠️ Risky for long-term conservative investors due to overvaluation and weak fundamentals.
Overall Verdict: HD – Hold ๐ (with tactical Buy-Sell opportunities).
Disclaimer
This document is purely for educational and analytical purposes only. It represents personal study, data interpretation, and thought-provoking observations. It does not constitute investment advice or a recommendation. Investors must make independent decisions after consulting certified financial advisors, taking into account their own objectives and risk appetite.
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