Suzlon Share Price Target 2025, Future Prediction, Forecast 2024, 2025, 2026,2027, 2028, 2029, 2030, 2031, 2035,2040,2045,2050,2055,2060,2065,2070,2075,2080,2085,2090,2095,2100
Suzlon Energy, one of India’s leading renewable energy companies, has seen a turbulent ride in recent years. However, with strong industry tailwinds and government support driving exponential growth in India’s renewables sector, Suzlon is gearing up for a potential comeback.
What could Suzlon Share Price Target 2025? Let’s take a comprehensive look.
Table of Contents
Overview of Suzlon Energy
Founded in 1995 by Tulsi Tanti, Suzlon Energy is one of India’s foremost wind turbine manufacturers. Suzlon has installed over 20 GW of wind capacity across 17 countries over the past two decades.
At its peak, Suzlon was India’s wind energy leader and one of the top global wind turbine makers. However, in the early 2010s, Suzlon suffered heavy losses and falling market share due to execution missteps and stiff competition.
Nonetheless, Suzlon has undertaken significant debt restructuring and aims to leverage its extensive industry experience for a leaner, more competitive operations in the future.
With renewable energy capacity set for exponential growth in India, Suzlon stands well-positioned as an experienced homegrown player to potentially regain lost ground.
Key Growth Drivers for Suzlon till 2025
Suzlon’s share price outlook over the next few years will be determined by a combination of underlying industry trends and company-specific developments.
India’s Renewables Growth Trajectory
India aims to have 175 GW of installed renewable energy capacity by 2022, with an ambitious target of 450 GW by 2030. Out of this wind energy itself offers a 100 GW capacity expansion potential.
Such exponential targets provide a thriving growth avenue for wind energy leaders like Suzlon to rapidly scale up installations and order pipelines over this decade.
In fact, CRISIL estimates India’s wind energy market to grow at a ~14% CAGR till 2023, underscoring the positive long-term visibility.
Consolidation and Market Share Gains
While Suzlon faces stiff completion from players like Siemens Gamesa, Vestas, GE Renewables etc., the highly fragmented wind energy market is ripe for consolidation.
With many small regional manufacturers facing viability issues, large established names like Suzlon can potentially gain market share through acquisitions or organic growth over the next 5 years.
Cost Competitiveness
Suzlon has invested extensively in R&D and operational excellence over the past decade. Initiatives like development of high-yield turbine models and digitalization of processes aim to improve cost efficiency.
With further economies of scale and supply chain optimization, Suzlon can achieve 15-20% cost reduction to be sharply competitive on bidding for wind power projects till 2025.
Financial Performance Turnaround
A significant drag on Suzlon’s recent share price has been its high debt levels and losses. However, the company has done remarkably well over the past 4-5 years to restructure and reduce debt.
As per latest quarterly results, Suzlon has returned to profitability after years of losses. With a leaner balance sheet and better capital efficiency, Suzlon is firmly on track to achieve sustained turnaround in profitability metrics in the coming years.
Suzlon Share Price Target 2025
Based on Suzlon’s strong industry positioning and the positive growth outlook for India’s renewable energy landscape, analysts expect strong upside for Suzlon’s stock over the next 5 years.
As per analyst consensus estimates, Suzlon’s share price target for 2025 stands around ₹65-75 indicating a robust 2x to 3x upside from current levels.
Domestic brokerages like Axis Securities, Anand Rathi and Nirmal Bang Institutional Equities project Suzlon’s share price to cross ₹70 by 2025 based on 1-1.5x FY2025E EV/EBITDA valuations.
Global firms like Goldman Sachs, Jeffries and Bank of America also estimate significant upside in Suzlon Energy’s share price in the coming years as industry tailwinds propel order flows and capacity utilization.
Key Risk Factors to Consider
While the long-term growth narrative for Suzlon stock is positive, investors should also account for downside risks such as:
- Execution and working capital challenges
- Input cost inflation affecting profitability
- Delays in debt reduction and cash flow generation
- Intensifying competition impacting pricing power
Prudent risk management is advised while investing in Suzlon shares from a 2-3 year horizon. Investors should size their exposure appropriately and average out over time.
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Final Thoughts
In summary, Suzlon Energy stock offers a high risk-reward investment proposition over the next 5 years. By 2025, Suzlon’s share price can potentially reach ₹65-75 – representing sizable upside from current beaten-down levels.
However, it remains a turnaround story with near-term challenges. For investors willing to stomach volatility, Suzlon stock can yield multi-bagger returns riding India’s renewable energy wave through 2025 and beyond. Periodic review of risk factors is highly recommended.
