Suzlon Energy Stock Surges: Key Drivers

Suzlon Energy shares rally for the fourth consecutive session, fueled by strong earnings, new wind energy projects, and positive market sentiment. Will this momentum continue? Let’s dive in.

Suzlon Energy Limited, one of India’s leading renewable energy companies, is on a winning streak, with its stock soaring for the fourth straight session. The stock jumped 5.46% to close at ₹54.98 on the Bombay Stock Exchange (BSE), pushing its market capitalization to ₹74,411 crore.

This surge is not just a short-term spike but part of a broader trend. Over the past two years, Suzlon’s stock has skyrocketed by 536%, proving its strength in the renewable energy sector. However, it is still 36.54% below its 52-week high of ₹86.04, recorded on September 12, 2024.

Why is Suzlon Energy Stock Rising?

Several key factors are driving this rally:

1. Major Order Win – Suzlon recently secured a 204.75 MW wind energy project from Jindal Green Wind 1 Pvt. Ltd., a subsidiary of Jindal Renewables. This project aims to support India’s push for low-carbon steel production and strengthen Suzlon’s position in the renewable energy space.
   
   
2. Strong Financial Performance – The company reported impressive Q3 FY25 results, with net profit surging 91% year-on-year to ₹388 crore, compared to ₹203 crore in Q3 FY24. Revenue from operations also doubled to ₹2,969 crore from ₹1,553 crore in the same period last year.
   
   
3. Bullish Market Sentiment – Analysts believe Suzlon’s stock has more room to grow. Jigar S Patel (Anand Rathi) highlighted that the stock has bounced from a strong support level, signaling buying interest. He suggests that ₹53.5 is a critical support level, and if maintained, the uptrend could continue. A R Ramachandran (SEBI-registered analyst) noted that a daily close above ₹55.1 could push the stock towards ₹62 in the short term.
   
   

Suzlon’s Growth Strategy & Market Outlook

Suzlon has positioned itself as a key player in India’s clean energy transition, backed by strong government policies supporting renewable energy. The company has a healthy order book, with analysts projecting a 67% compound annual growth rate (CAGR) in wind turbine deliveries between FY24 and FY27.

In November 2024, Geojit Financial Services issued a ‘Buy’ recommendation on Suzlon, setting a target price of ₹68, citing its robust growth potential in the wind energy sector.

Will Suzlon’s Stock Continue to Rise?

While Suzlon’s recent rally is promising, investors should remain cautious. The stock is volatile, and external factors like policy changes, global energy trends, and raw material costs can impact its performance. However, if the company continues securing big contracts and delivering strong earnings, Suzlon could see further upside in 2025.

Suzlon Energy is making big moves in India’s renewable energy sector, and its stock is reflecting that momentum. While risks remain, the company’s strong financials, strategic business moves, and positive market outlook make it an exciting stock to watch in 2025.