Check Before You Invest : Suzlon Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does Suzlon Energy Ltd belong to?

Suzlon Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Suzlon Energy Ltd a good quality company?

Suzlon Energy Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Suzlon Energy Ltd undervalued or overvalued?

Suzlon Energy Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Suzlon Energy Ltd a good buy now?

Suzlon Energy Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Suzlon Energy Ltd?

Suzlon Energy Ltd revenue growth is 164.2% for FY-2025, which is above its 5-year CAGR of 93.5%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Suzlon Energy Ltd?

Suzlon Energy Ltd Return on capital employed is 38.65% for FY-2025, which is in line with its 5-year historical median of 38.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Suzlon Energy Ltd?

Suzlon Energy Ltd Return on Asset is 22.8%, which is above its 5-year historical median of 11.3%, indicating improved asset utilization efficiency.

Q.4 Cash conversion cycle of Suzlon Energy Ltd?

Suzlon Energy Ltd Cash conversion cycle is 62 days, above its 5-year historical median of 20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Suzlon Energy Ltd?

Suzlon Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.1% for FY-2025, which is above its 5-year median of -5.3%, indicating increasing margins.

Q.6 Operating Profit Margin of Suzlon Energy Ltd?

Suzlon Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.04% for FY-2025, which is above its 5-year median of 2.46% indicating increasing margins.

Q.7 Net Profit Margin of Suzlon Energy Ltd?

Suzlon Energy Ltd Net Profit Margin is 20.64% for FY-2025, is above with its 5-year median of 12.33%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.1	-5.3
Operating Profit Margin	16.04	2.46
Net Profit Margin	20.64	12.33

Q.8 Debt to Equity ratio of Suzlon Energy Ltd?

Suzlon Energy Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.14, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Suzlon Energy Ltd?

Suzlon Energy Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Suzlon Energy Ltd?

Promoters hold 11.73% of the Suzlon Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Suzlon Energy Ltd vs industry peers?

Suzlon Energy Ltd revenue CAGR is 93.50%, compared to the industry median CAGR of 19.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	164.2	19.2
Gross Profit Growth	88.9	37
Operating Profit Growth	77.4	26.6
Net Profit Growth	191.2	43.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.1	1.39
ROE	-	19.61
ROCE	38.65	32.56
Cash Conversion Cycle (days)	61.51	34

Valuation & price assessment

Q.1 Stock return of Suzlon Energy Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15.3%	63.3%	84.6%	-0.7%

Q.3 Valuation ratios of Suzlon Energy Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	24.11	25.44	37.99
Price to Book	9.82	9.90	3.99
Price to Sales	5.45	5.70	2.75
EV to EBITDA	28.75	102.52	18.70

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