Suzlon- A Comprehensive Guide

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An Overview

In the quest for clean and sustainable energy sources, wind power has emerged as a frontrunner. Suzlon Energy Limited, a prominent player in the renewable energy sector, has been at the forefront of harnessing the power of the wind to provide clean energy solutions. In this blog, we’ll take an in-depth look at Suzlon, its history, share price, current performance, future outlook, advantages of investing, and address some frequently asked questions about this pioneering company.

History of Suzlon

Suzlon Energy Limited was founded in 1995 by Tulsi Tanti in Pune, India. From its humble beginnings, Suzlon has grown to become one of the world’s leading wind turbine manufacturers and renewable energy solution providers. The company’s journey has been marked by innovation and a commitment to sustainability.

Suzlon’s pivotal moment came in 2003 when it introduced its first indigenously developed wind turbine generator, establishing itself as a significant player in the global renewable energy market. Over the years, Suzlon expanded its operations beyond India, with a global presence in more than 18 countries.

Share Price of Suzlon

The share price of Suzlon as of September 27, 2023 was Rs 25.60, which was down by 1.54% from the previous closing price of Rs 25.95. The share price fluctuated between Rs 25.55 and Rs 25.90 during the day. The company had a market capitalization of Rs 348.39 billion and a price-to-earnings ratio of 55.19.

The share price of Suzlon has increased by 249.28% in the last five years, but has decreased by 10.08% in the last month. The share price reached its 52-week high of Rs 27.05 on August 16, 2023 and its 52-week low of Rs 6.60 on October 1, 2022.

The company reported a net profit of Rs 1.01 billion for the quarter ended June 30, 2023, which was a decrease of 95.85% from the same quarter last year. The company attributed the decrease in profit to lower revenue, higher finance costs, and higher tax expenses.

Current Performance of Suzlon

To assess the current performance of Suzlon, we need to consider a range of factors, including its financial stability, market presence, and recent developments.

The company saw a decline in its revenue from operations by 9.29% to Rs 13.48 billion in the quarter ended June 30, 2023, compared to Rs 14.86 billion in the same quarter last year. The company said that the revenue was impacted by lower volumes and lower average selling price due to competitive market conditions.

The company has a debt of Rs 114.81 billion as of June 30, 2023, which is lower than Rs 121.21 billion as of March 31, 20231. The company said that it has reduced its debt by Rs 6.40 billion in the quarter ended June 30, 2023, through repayments and settlements with lenders.

Future Outlook of Suzlon

Suzlon’s future outlook is closely tied to the global push for renewable energy sources. With increasing awareness of climate change and the need to reduce carbon emissions, the demand for clean energy solutions is expected to grow.

The company has been working on improving the efficiency of its wind turbines and expanding its presence in emerging markets. Suzlon’s focus on research and development, coupled with its experience in the renewable energy sector, positions it well to benefit from the global transition to clean energy sources.

Advantages of Investing in Suzlon

Investing in Suzlon offers several potential advantages for environmentally conscious investors:

  • Environmental Impact: Suzlon plays a pivotal role in reducing carbon emissions by generating clean energy from wind sources. Investing in the company aligns with the goal of combating climate change.
  • Long-Term Growth Potential: As the world shifts towards renewable energy, companies like Suzlon are well-positioned for long-term growth. Wind energy is expected to play a significant role in the future energy landscape.
  • Global Presence: Suzlon’s global presence provides diversification opportunities for investors looking to tap into the renewable energy market on a global scale.
  • Innovation and Research: Suzlon continues to invest in research and development to improve the efficiency and cost-effectiveness of wind turbines, which can result in competitive advantages.
  • Economic Viability: Renewable energy projects, including wind farms, often enjoy government incentives and subsidies, making them economically viable investments.

However, it’s crucial to remember that all investments come with risks, and the performance of any stock can fluctuate. 

Wrapping Up

In conclusion, Suzlon Energy Limited has played a significant role in advancing the renewable energy sector, particularly in wind power. Its commitment to sustainability and global presence make it a noteworthy player in the transition towards clean energy. While there have been challenges along the way, Suzlon’s future outlook appears promising as the world continues to prioritise green energy solutions. As with any investment, potential investors should conduct thorough research and consider their financial goals and risk tolerance.

 

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Frequently Asked Questions

1. What is Suzlon’s primary business?

Answer Field

Suzlon’s primary business is manufacturing wind turbines and providing renewable energy solutions, including wind farm development and maintenance.

2. Where is Suzlon headquartered?

Answer Field

Suzlon is headquartered in Pune, India.

3. How does Suzlon contribute to sustainability?

Answer Field

Suzlon contributes to sustainability by harnessing wind energy, a clean and renewable source, and providing it to communities and industries, reducing reliance on fossil fuels.

4. Does Suzlon operate only in India?

Answer Field

No, Suzlon has a global presence and operates in more than 18 countries, including the United States, China, Australia, and several European nations.

5. What challenges has Suzlon faced in recent years?

Answer Field

Suzlon faced financial challenges and underwent debt restructuring efforts. However, the company remained committed to its core mission of sustainable energy solutions.

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