Stock Performance and Market Context
The stock has been under pressure for the past two trading sessions, registering a cumulative decline of 2.67%. Today’s fall of 1.10% further extended its downward trajectory, underperforming its sector by 0.37%. Suzlon Energy is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market has shown resilience. The Sensex, after a negative start, rebounded sharply by 605.11 points to close at 82,877.60, up 0.46%. The index remains within 3.96% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. Despite this positive market environment, Suzlon Energy’s stock has lagged significantly.
Historical Price and Returns Analysis
Over the past year, Suzlon Energy’s stock price has declined by 18.34%, a stark contrast to the Sensex’s 9.43% gain and the BSE500’s 12.02% return. The stock’s 52-week high was Rs.74.3, indicating a substantial drop of nearly 40% from that peak. This underperformance highlights the challenges faced by the company relative to the broader market and its sector peers.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Valuation and Financial Metrics
Suzlon Energy currently holds a Mojo Score of 36.0 with a Mojo Grade of Sell, downgraded from Hold on 24 Sep 2025. The company’s market cap grade stands at 2, reflecting its mid-cap status within the Heavy Electrical Equipment sector. Despite a return on equity (ROE) of 40.4%, the stock is considered very expensive with a price-to-book value of 7.8, which is high relative to its peers’ historical averages.
Interestingly, the company’s profits have surged by 176% over the past year, and the PEG ratio is a low 0.1, indicating that earnings growth has outpaced the stock price decline. However, this has not translated into positive stock performance, suggesting valuation concerns and market sentiment weigh heavily on the share price.
Operational and Financial Highlights
Suzlon Energy’s financial health shows several positive indicators. The company maintains a low average debt-to-equity ratio of zero, underscoring a conservative capital structure. Net sales have grown at an annual rate of 39.30%, while operating profit has expanded by 55.82%, reflecting robust top-line and margin improvements.
Moreover, the company has reported positive results for five consecutive quarters. The latest six-month period saw a profit after tax (PAT) of Rs.1,724.72 crores, representing a growth of 193.76%. Return on capital employed (ROCE) for the half-year reached a high of 28.23%, and quarterly net sales peaked at Rs.4,236.09 crores, all indicative of strong operational performance despite the stock’s price weakness.
Shareholding and Market Sentiment
Institutional investors hold a significant 32.97% stake in Suzlon Energy, suggesting confidence from entities with extensive analytical resources. This level of institutional ownership often provides a stabilising influence on stock price movements, although it has not prevented the recent decline to the 52-week low.
Suzlon Energy Ltd or something better? Our SwitchER feature analyzes this mid-cap Heavy Electrical Equipment stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Sector and Market Comparison
Within the Heavy Electrical Equipment sector, Suzlon Energy’s recent performance contrasts with the broader market’s upward trend. While the Sensex and BSE500 indices have delivered positive returns over the last year, Suzlon’s stock has lagged considerably. The sector itself has seen mixed results, with mega-cap stocks leading gains, whereas mid-cap stocks like Suzlon have faced headwinds.
The stock’s current trading below all major moving averages further emphasises the prevailing downward trend. This technical positioning, combined with valuation concerns and relative underperformance, has contributed to the stock reaching its lowest level in 52 weeks.
Summary of Key Financial Ratios and Trends
Suzlon Energy’s financial ratios present a complex picture. The company’s ROE of 40.4% is robust, yet the high price-to-book ratio of 7.8 suggests the market has priced in significant growth expectations. The PEG ratio of 0.1 indicates earnings growth is not fully reflected in the stock price, but the negative stock returns over the past year highlight a disconnect between fundamentals and market valuation.
Net sales and operating profit growth rates of 39.30% and 55.82% respectively demonstrate strong business expansion, supported by a debt-free balance sheet. The PAT growth of 193.76% in the latest six months and a ROCE of 28.23% further underline operational strength.
Conclusion
Suzlon Energy Ltd’s stock reaching a 52-week low of Rs.44.7 reflects a combination of valuation pressures, relative underperformance against the broader market, and technical weakness. Despite strong financial results and growth metrics, the stock has not kept pace with sector and market gains. Institutional ownership remains significant, and the company’s conservative capital structure and consistent profitability provide a foundation amid current market challenges.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
