From a penny stock to large-cap: Suzlon share price soars 2,900% in 5 years; experts say more growth left

Suzlon Energy shares have delivered a staggering 2,900 per cent return since the COVID-19 crash in March 2020, transforming into a multibagger penny stock. The renewable energy major, which was once a penny stock priced at ₹1.93 in March 2020, closed at ₹57.92 in the previous trading session on the BSE. This means an investment of ₹10,000 in the stock during the pandemic lows would be worth around ₹3,00,000 today.

Massive Gains Despite Recent Volatility

The stock has also offered multibagger returns over the past three years, soaring 575 per cent. Over the last one year, it has gained 55 per cent. Notably, in March 2025 alone, the stock has surged nearly 17 per cent, bouncing back from five consecutive months of losses. During this losing streak, Suzlon shed 14.5 per cent in February, 6.5 per cent in January, 1 per cent in December, 6 per cent in November, and 16 per cent in October 2024.

At the current levels, Suzlon Energy shares remain 33.30 per cent below their 52-week high of ₹86.04, hit on September 12, 2024. However, they have have recovered 57 per cent from the 52-week low of ₹36.55, recorded on March 22, 2024.

Brokerages see sharp gains for Suzlon shares

Geojit has reiterated its buy recommendation on Suzlon Energy with a target price of ₹71, indicating a potential upside of 22.5 per cent. The brokerage expects robust order inflows in the near term, with the commercial and industrial (C&I) portfolio expanding further.

It noted that while wind turbine generator (WTG) deliveries have been strong, installation growth has been sluggish due to execution challenges like transmission delays and land-related issues. Geojit highlighted that the installation-to-delivery ratio for the first nine months of FY25 stood at 0.25x, reflecting the lag in installations.

Despite revising its FY26E and FY27E revenue estimates downward by 10 per cent and 21 per cent, respectively, Geojit forecasts a 70 basis points (bps) margin expansion. The brokerage expects higher EBITDA contributions and improved profitability in the WTG segment due to a better project mix, driving consolidated EBITDA margins higher. It estimates Suzlon’s profit after tax (PAT) to grow at a 30 per cent CAGR during FY25-27. Geojit values the stock at 40x FY27 estimated EPS to arrive at its ₹71 target price.

MOSL (Motilal Oswal Financial Services) has also initiated coverage on Suzlon Energy with a buy rating and a target price of ₹70, indicating a 21 per cent upside. The brokerage emphasised Suzlon’s leadership in the wind energy sector, with an installed capacity of approximately 20.9GW across 17 countries. It highlighted the company’s presence across WTG sales, project execution, foundry and forging components, and operations and maintenance (O&M) services.

MOSL projects India’s new wind energy installations to reach around 4GW in FY25, 6GW in FY26, and 7-8GW annually from FY27 onward. It estimates Suzlon’s order book execution to hit 3.2 GW in FY27. The brokerage forecasts a CAGR of 51 per cent, 52 per cent, and 63 per cent in revenue, EBITDA, and adjusted PAT, respectively, over FY24-27, with consolidated EBITDA margins in the range of 14-16 per cent during FY25-FY27.

JM Financial, however, has lowered its price target on Suzlon Energy from ₹80 to ₹71, citing execution challenges. The brokerage noted that Suzlon’s manufacturing capacity is set to increase from 3.15GW to 4.5GW, considering its Daman and Pondicherry plants. Despite the downward revision, JM Financial maintained its buy rating, moderating the P/E multiple from 40x FY26 EPS to 35x FY27 EPS, factoring in execution risks that may limit growth beyond FY27.

Strong Q3 FY25 Performance

Suzlon Energy reported a 91 per cent year-on-year (YoY) jump in its consolidated net profit for the December 2024 quarter (Q3 FY25). The company’s profit surged to ₹388 crore, up from ₹203 crore in the year-ago period. Revenue from operations rose 9 per cent during the same quarter, indicating steady business momentum.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.