Suzlon Energy Receives 'Buy' Rating and Shows Strong Growth in Renewable Energy Industry

Suzlon Energy, a leading player in the renewable energy industry, has recently received a 'Buy' rating from MarketsMOJO. The company has shown a healthy long-term growth with an annual rate of 38.80% in operating profit. In fact, in the last 11 consecutive quarters, Suzlon Energy has declared positive results, with its operating profit to interest ratio being the highest at 5.15 times and operating profit to net sales ratio at 15.83%.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 25-Jan-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock. Additionally, the company has a high institutional holding of 23.98%, which shows that these investors have better capabilities and resources to analyze the fundamentals of the company.

Suzlon Energy has also shown a market-beating performance in the long term as well as the near term, with a return of 348.05% in the last 1 year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months. With a market cap of Rs 55,501 crore, Suzlon Energy is the biggest company in the sector, constituting 65.04% of the entire sector. Its annual sales of Rs 5,924.51 crore are also 63.44% of the industry.

However, there are some risks associated with investing in Suzlon Energy. The company has a high debt to EBITDA ratio of 23.49 times, which may affect its ability to service debt. Additionally, the return on equity (avg) of 1.99% signifies low profitability per unit of shareholders' funds. The stock is also trading at a very expensive valuation with a price to book value of 16.8. However, it is currently trading at a discount compared to its average historical valuations. The PEG ratio of the company is 0.5, indicating that its profits have risen by 434.7% while the stock has generated a return of 348.05% in the past year.

In conclusion, Suzlon Energy has shown strong growth and performance in the renewable energy industry, making it a promising stock to consider for investment. However, investors should also be aware of the risks associated with the company before making any investment decisions.