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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Suzlon Energy Ltd

About the Company - Suzlon Energy Ltd

Suzlon Energy Ltd. is a Public Limited Listed company incorporated on 10/04/1995 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L40100GJ1995PLC025447 and registration number is 025447. Currently Company is involved in the business activities of Manufacture of power generators (except battery charging alternators for internal combustion engines), motor generator sets (except turbine generator set units). Company’s Total Operating Revenue is Rs. 4040.04 Cr. and Equity Capital is Rs. 1843.49 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavySuzlon, 5, Shrimali Society, Ahmedabad Gujarat 380009investors@suzlon.com
http://www.suzlon.com
Management
NamePosition Held
Mr. Vinod R TantiChairman & Managing Director
Mr. Girish R TantiExecutive Vice Chairman
Mr. Hiten TimbadiaNon Executive Director
Mr. Ajay MathurNominee Director
Mr. Pranav T TantiNon Executive Director
Mr. Marc DesaedeleerInd. Non-Executive Director
Mr. Per Hornung PedersenInd. Non-Executive Director
Mr. Sameer ShahInd. Non-Executive Director
Mr. Gautam DoshiInd. Non-Executive Director
Mrs. Seemantinee KhotInd. Non-Executive Director

Suzlon Energy Ltd. Share Price Update

Share PriceValue
Today₹47.38
Previous Day₹49.34

Basic Stock Data of Suzlon Energy Ltd

Market Cap 60,091 Cr.
Current Price 44.6
High / Low50.7/6.95
Stock P/E121
Book Value 2.53
Dividend Yield0.00 %
ROCE20.8 %
ROE%
Face Value 2.00

Data Source: screener.in

Competitors of Suzlon Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bright Solar Ltd 27.2 Cr. 10.912.4/4.65 12.90.00 %0.33 %0.16 % 10.0
Action Construction Equipment Ltd 13,561 Cr. 1,1391,211/33748.9 87.70.09 %26.2 %18.8 % 2.00
Triveni Turbine Ltd 14,336 Cr. 451498/29057.8 27.90.29 %28.7 %21.5 % 1.00
Sanghvi Movers Ltd 5,053 Cr. 1,1671,232/30529.0 2090.35 %15.2 %12.4 % 2.00
Bharat Dynamics Ltd 31,376 Cr. 1,7121,939/87865.9 1840.55 %15.6 %11.3 % 10.0
Industry Average18.04 Cr92.9840.32104.30.26%17.21%12.83%5

Suzlon Energy Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales7329551,1361,1421,3561,6102,4741,3811,4381,4581,6941,3511,421
Expenses6208199409881,1231,3242,2581,1661,2681,2431,4611,1521,196
Operating Profit112136196154233286217214170215233199225
OPM %15%14%17%13%17%18%9%16%12%15%14%15%16%
Other Income82754906542,4725625719-28
Interest1971951971811901861761519786866244
Depreciation69576258616377596358815551
Profit before tax672-111-595-1342-332,4761578323101102
Tax %0%-0%-2%30%-4%11%-485%2%-283%-1%1%0%0%
Net Profit675-118-544-1238-2062,4335678320101102
EPS in Rs0.66-0.11-0.05-0.02-0.010.03-0.182.010.050.060.220.080.08

Suzlon Energy Ltd Quarterly Chart

Suzlon Energy Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales21,35918,91420,40319,9549,48312,7148,1165,0252,9733,3466,5825,9715,925
Expenses19,52620,41520,46525,7039,76710,2357,1405,0483,8292,8095,6825,1375,053
Operating Profit1,833-1,501-62-5,749-2832,479977-23-856537900833872
OPM %9%-8%-0%-29%-3%20%12%-0%-29%16%14%14%15%
Other Income341-286-495-1942,56310955592-42823952,739255
Interest1,6551,8552,0702,0651,3041,2881,5811,2701,367996735421278
Depreciation661740777809392389342342419258260260244
Profit before tax-142-4,383-3,404-8,816584912-391-1,543-2,68410502,892604
Tax %-233%-8%-4%-4%-4%1%0%1%-0%4%41,648%0%
Net Profit-506-4,732-3,548-9,133583852-384-1,537-2,692104-1772,887601
EPS in Rs-2.17-21.47-11.43-19.950.941.38-0.57-2.32-4.010.10-0.172.280.44
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Suzlon Energy Ltd Profit & Loss Yearly Chart

Suzlon Energy Ltd Growth

Compounded Sales Growth
10 Years:-11%
5 Years:-6%
3 Years:26%
TTM:-11%
Compounded Profit Growth
10 Years:7%
5 Years:17%
3 Years:27%
TTM:893%
Stock Price CAGR
10 Years:17%
5 Years:53%
3 Years:114%
1 Year:440%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Suzlon Energy Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3553554987421,0041,0051,0641,0641,0641,7021,8432,4542,719
Reserves4,825547-879-8,064-8,537-7,846-8,031-9,562-12,047-5,276-5,601-1,355690
Preference Capital6060000001,9632,2240
Borrowings14,03415,19117,05317,81111,41411,11411,99611,55213,2104,9624,2421,938146
Other Liabilities13,39413,11313,58911,2435,8427,8876,0925,8164,3035,2145,9912,4862,377
Total Liabilities32,60829,20630,26121,7319,72312,16011,1218,8716,5306,6016,4755,5235,931
Fixed Assets12,23312,07613,5155,8431,5731,6651,4631,5201,3581,1661,059866801
CWIP36930643335623320635322912210720638
Investments973670726639367067202023000
Other Assets19,90916,78815,60615,2667,5249,6199,2377,1025,0305,3055,3964,6515,092
Total Assets32,60829,20630,26121,7319,72312,16011,1218,8716,5306,6016,4755,5235,931

Suzlon Energy Ltd Reserves and Borrowings Chart

Suzlon Energy Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 8395565681,119-7391,602-1091,267-9295301,302467
Cash from Investing Activity -643-328-439-8254,482-643-138125-32-24-1985
Cash from Financing Activity -249-901360-199-5,656-1,249492-1,898969-327-1,045-684
Net Cash Flow-53-67348995-1,914-290245-5068180238-133

Suzlon Energy Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days91534850971041341371681307672
Inventory Days14514110290164168216355400503186176
Days Payable15112413412219323318026525336615586
Cash Conversion Cycle856916186839170227315266107162
Working Capital Days4-13-36-1318-9675-82-3781766190
ROCE %7%-12%-5%-48%11%53%15%-8%-48%11%22%21%

Suzlon Energy Ltd Financial Efficiency Indicators Chart

Suzlon Energy Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters17.17%16.52%16.41%16.04%15.85%14.92%14.50%14.50%14.50%14.50%13.28%13.28%
FIIs4.22%4.08%4.10%4.85%5.52%6.29%7.84%7.65%7.64%7.79%10.88%17.83%
DIIs16.54%17.72%17.06%14.62%13.57%15.50%8.24%5.82%5.55%5.90%9.81%6.16%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.02%0.02%0.00%
Public62.07%61.69%62.43%64.49%65.06%63.29%69.40%72.02%72.30%71.78%65.99%62.74%
No. of Shareholders11,17,92712,20,46413,15,91215,46,56420,70,70921,15,05722,35,31024,31,13624,42,67224,90,96128,68,15235,12,040

Suzlon Energy Ltd Shareholding Pattern Chart

No. of Suzlon Energy Ltd Shareholders

Suzlon Energy Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
ICICI Prudential MidCap Fund291303002.18111.28
Invesco India Contra Fund264673030.78101.11
Bandhan Flexi Cap Fund186895561.0671.39
Edelweiss Large & Mid Cap Fund119231121.7345.55
Bandhan Sterling Value Fund90000000.4434.38
Invesco India ELSS Tax Saver Fund81091961.2630.98
Nippon India Nifty Smallcap 250 Index Fund70139612.7926.79
Bandhan Small Cap Fund50876060.519.43
Bandhan ELSS Tax Saver Fund50000000.3319.1
Invesco India Infrastructure Fund49176572.4318.79

Suzlon Energy Ltd ROCE Trend

Suzlon Energy Ltd EPS Trend

Suzlon Energy Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)2.64-0.220.14-4.97-2.87
Diluted EPS (Rs.)2.64-0.220.12-4.97-2.87
Cash EPS (Rs.)2.560.100.42-4.27-2.24
Book Value[Excl.RevalReserv]/Share (Rs.)0.89-3.88-4.12-20.81-16.04
Book Value[Incl.RevalReserv]/Share (Rs.)0.89-3.88-4.12-20.81-16.04
Revenue From Operations / Share (Rs.)4.877.143.935.599.45
PBDIT / Share (Rs.)0.690.980.65-1.560.07
PBIT / Share (Rs.)0.480.700.34-2.35-0.56
PBT / Share (Rs.)2.360.000.12-5.05-2.90
Net Profit / Share (Rs.)2.35-0.180.11-5.06-2.88
NP After MI And SOA / Share (Rs.)2.32-0.210.12-4.97-2.87
PBDIT Margin (%)14.2613.8516.56-27.990.81
PBIT Margin (%)9.919.908.84-42.07-5.98
PBT Margin (%)48.430.003.13-90.28-30.70
Net Profit Margin (%)48.35-2.522.99-90.53-30.47
NP After MI And SOA Margin (%)47.71-3.033.11-88.87-30.39
Return on Networth / Equity (%)259.200.00-3.020.000.00
Return on Capital Employeed (%)20.9629.0910.6112.4814.46
Return On Assets (%)51.58-3.081.57-40.46-17.21
Long Term Debt / Equity (X)1.38-0.95-1.18-0.07-0.73
Total Debt / Equity (X)1.73-1.18-1.23-0.87-1.13
Asset Turnover Ratio (%)0.991.010.500.050.25
Current Ratio (X)1.551.201.270.280.59
Quick Ratio (X)0.870.670.700.150.32
Inventory Turnover Ratio (X)1.801.870.760.140.72
Interest Coverage Ratio (X)2.021.240.55-0.600.03
Interest Coverage Ratio (Post Tax) (X)1.400.660.29-0.92-0.22
Enterprise Value (Cr.)11232.4514297.2310119.3410608.3412815.48
EV / Net Operating Revenue (X)1.882.173.023.572.55
EV / EBITDA (X)13.1915.6818.26-12.75311.06
MarketCap / Net Operating Revenue (X)1.621.281.270.350.65
Price / BV (X)8.82-2.39-1.23-0.09-0.38
Price / Net Operating Revenue (X)1.621.281.270.350.65
EarningsYield0.29-0.020.02-2.48-0.46

Suzlon Energy Ltd Profitability Ratios (%)

Suzlon Energy Ltd Liquidity Ratios

Suzlon Energy Ltd Liquidity Ratios (%)

Suzlon Energy Ltd Interest Coverage Ratios (X)

Suzlon Energy Ltd Valuation Ratios

Fair Value / Intrinsic Value of Suzlon Energy Ltd

Fair Value: ₹46.84

The stock is undervalued by 5.02% compared to the current price ₹44.6

*Investments are subject to market risks

Strength and Weakness of Suzlon Energy Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -16.17, which is a positive sign.
  2. The company has shown consistent growth in sales (10.23 cr) and profit (127.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of -0.28 and average Dividend Yield of -3.88%.
  2. The stock has a low average ROCE of 1.58%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 128.50, which may not be favorable.
  4. The company has higher borrowings (323.00) compared to reserves (-4,702.77), which may suggest financial risk.

Should I Buy Suzlon Energy Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Suzlon Energy Ltd:
    1. Net Profit Margin: 48.35%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.96% (Industry Average ROCE: 20.14%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.40
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.87
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 121 (Industry average Stock P/E: 39.94)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: 1.73
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Suzlon Energy Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE