Suzlon Energy Ltd (SUZLON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BHEL

TD Power Systems

Azad Engineering

GE Vernova T&D

CG Power & Ind

Triveni Turbine

Siemens

Thermax

Schneider Elect.

Suzlon Energy

Siemens Ener.Ind

Why is Suzlon Energy Ltd ?

PAT(Q) At Rs 305.22 cr has Fallen at -61.4% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 268.78 cr has Grown at 20.03%
OPERATING PROFIT TO INTEREST (Q) Lowest at 4.45 times

With ROE of 33.4, it has a Expensive valuation with a 6.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.29%, its profits have risen by 50.2% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.92% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.29% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Suzlon Energy for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suzlon Energy

-22.18%

-0.66

33.55%

Sensex

-3.88%

-0.29

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.47%

EBIT Growth (5y)

49.92%

EBIT to Interest (avg)

4.15

Debt to EBITDA (avg)

2.35

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

35.26%

ROCE (avg)

24.68%

ROE (avg)

20.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.83

EV to EBIT

23.92

EV to EBITDA

21.12

EV to Capital Employed

7.45

EV to Sales

3.66

PEG Ratio

0.41

Dividend Yield

ROCE (Latest)

31.60%

ROE (Latest)

33.43%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET SALES(Latest six months)

At Rs 9,322.34 cr has Grown at 34.68%

ROCE(HY)

Highest at 28.78%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,245.70 cr

-20What is not working for the Company

PAT(Q)

At Rs 305.22 cr has Fallen at -61.4% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 268.78 cr has Grown at 20.03%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 4.45 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.66 times

NET SALES(Q)

At Rs 3,829.09 cr has Fallen at -8.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 595.24 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 15.55%

PBT LESS OI(Q)

Lowest at Rs 356.03 cr.

EPS(Q)

Lowest at Rs 0.22

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Here's what is working for Suzlon Energy

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,245.70 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Suzlon Energy

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 356.03 cr has Fallen at -36.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 560.45 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 305.22 cr has Fallen at -61.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 790.85 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 4.45 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Latest six months

At Rs 268.78 cr has Grown at 20.03%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

At Rs 3,829.09 cr has Fallen at -8.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 4,182.96 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 595.24 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 15.55%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 356.03 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.22

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.66 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio