Suzlon Energy Ltd is Rated Sell

Current Rating and Its Implications

The 'Sell' rating assigned to Suzlon Energy Ltd indicates a cautious stance for investors considering this stock. This recommendation suggests that the stock may underperform relative to the broader market or its sector peers in the near term. Investors are advised to carefully evaluate the company’s fundamentals, valuation, financial trends, and technical indicators before making investment decisions.

Quality Assessment

As of 09 January 2026, Suzlon Energy Ltd holds an average quality grade. This reflects a moderate level of operational efficiency and business stability. While the company demonstrates some strengths in its core operations, it does not currently exhibit the robust quality metrics that might inspire greater investor confidence. The average quality grade suggests that while the company is not fundamentally weak, it faces challenges that limit its appeal compared to higher-quality peers.

Valuation Perspective

The valuation grade for Suzlon Energy Ltd is classified as very expensive. The stock trades at a price-to-book (P/B) ratio of 8.8, which is significantly higher than typical valuations in the heavy electrical equipment sector. This elevated valuation implies that the market has priced in substantial growth expectations. However, such a premium also increases the risk of price corrections if the company fails to meet these expectations. Investors should be wary of the high valuation, especially given the stock’s recent underperformance.

Financial Trend Analysis

Despite the challenging valuation, Suzlon Energy Ltd’s financial trend is very positive as of 09 January 2026. The company has reported a remarkable 221.6% increase in profits over the past year, signalling strong operational improvements and effective cost management. Additionally, the return on equity (ROE) stands at an impressive 40.4%, indicating efficient utilisation of shareholder capital. The PEG ratio of 0.1 further suggests that the company’s earnings growth is not fully reflected in its current stock price, which could be a point of interest for value-oriented investors.

Technical Outlook

From a technical standpoint, Suzlon Energy Ltd is currently rated bearish. The stock has experienced a downward trend over recent months, with returns of -6.17% over the past week and -22.72% over the last six months. The bearish technical grade reflects negative momentum and weak price action, which may deter short-term traders and investors looking for momentum plays. This technical weakness aligns with the 'Sell' rating, reinforcing the cautious outlook.

Stock Performance Relative to Market

As of 09 January 2026, Suzlon Energy Ltd has underperformed the broader market significantly. Over the past year, the stock has delivered a negative return of -12.04%, while the BSE500 index has generated a positive return of 6.53%. This divergence highlights the stock’s relative weakness and the challenges it faces in regaining investor favour. The year-to-date return of -3.43% further emphasises the subdued investor sentiment surrounding the stock.

Investment Considerations

For investors, the current 'Sell' rating on Suzlon Energy Ltd serves as a signal to approach the stock with caution. The combination of a very expensive valuation and bearish technical indicators suggests limited upside potential in the near term. However, the company’s strong financial trend and impressive profit growth indicate underlying operational improvements that could support a turnaround if sustained. Investors with a higher risk tolerance may monitor the stock for signs of technical recovery or valuation correction before considering entry.

Sector and Market Context

Suzlon Energy Ltd operates within the heavy electrical equipment sector, a space that often experiences cyclical demand and capital intensity. The midcap status of the company places it in a category where volatility can be more pronounced compared to large-cap peers. Given the current market environment and sector dynamics, the stock’s performance and rating reflect both company-specific factors and broader industry trends.

Summary for Investors

In summary, Suzlon Energy Ltd’s current 'Sell' rating reflects a nuanced picture. The stock’s very expensive valuation and bearish technical outlook weigh heavily against it, signalling caution. Conversely, the company’s strong financial performance and profit growth offer some optimism for the future. Investors should weigh these factors carefully, considering their investment horizon and risk appetite before making decisions.

Looking Ahead

Going forward, monitoring Suzlon Energy Ltd’s ability to sustain its profit growth and improve technical momentum will be crucial. Any significant changes in sector conditions or company fundamentals could prompt a reassessment of the rating. For now, the 'Sell' recommendation advises prudence, encouraging investors to prioritise capital preservation and seek opportunities with more favourable risk-reward profiles.

Key Metrics at a Glance (As of 09 January 2026)

• Mojo Score: 41.0 (Sell Grade)


• Return on Equity (ROE): 40.4%


• Price to Book Value: 8.8 (Very Expensive)


• Profit Growth (1 Year): +221.6%


• PEG Ratio: 0.1


• 1 Year Stock Return: -12.04%


• BSE500 1 Year Return: +6.53%


• Technical Grade: Bearish

Conclusion

Suzlon Energy Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 24 September 2025, is supported by a comprehensive analysis of quality, valuation, financial trends, and technical factors as of 09 January 2026. While the company shows promising financial improvements, the high valuation and negative price momentum justify a cautious stance for investors at this time.

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