Suzlon Energy is India’s best Wind Energy company. It is like a Monolopy in Wind Energy with 25% to 30% market share. Although there are many companies like Adani Energy, Tata Power, Torrent Power etc in Renewable Energy field they are not competitor to Suzlon Energy because they do not manufacture or install wind turbines. These companies are clients for companies like Suzlon, Inox etc.

Suzlon had about 2 months ago…

got good orders. But that is very less time to reflect in its books. These should start reflecting in Suzlon Energy’s books in March 2024 or the quarter after that.

When to worry about Suzlon Energy?: Suzlon Energy has been sailing on a steady course positing above Rs 1,300+ crores revenue over last 5 quarters and booked profit over the last 5 quarters which is excellent news for a turnaround company.

Although this time the profit was half the profit of last year… the point to note is that… there was a profit of 100 crores.

Competition in Wind Energy: Other than that there are a lot of Solar Power installing companies in India but there are very few Wind Energy installing companies in India. Trust on its ability to service & maintain the turbines over its lifespan also plays a very big factor in wining orders. Therefore there is hardly any competition for Suzlon. Only factor remains how much orders can pick up Suzlon pick up.

We can take 3 things for granted:

1. Indian government will tender for 10GW every year from first & second quarter of this year 2023 itself.
2. Suzlon will take 25% to 30% of the market. It has historically been able to take this percent of market share. There is a chance Suzlon can bid for more than this, but beyond 30% would be too much even for Suzlon.
3. Every wind energy manufacturing in India will get business in such huge volume of tendering.

The maximum installation that Suzlon did was 1.8Gw in the year 2017. Today it seems Suzlon is in a position to install much more than that because previously the entire work was done by Suzlon. But nowadays a lot of work happens from the client side itself. This could also mean Suzlon could have lower margins but then it can make up for it by installing more number of Turbines.

The future looks very bright for Suzlon Energy and it definitely has a chance to touch 4 digits. If in 2007 Suzlon could touch Rs 459 when BSE Index was just 18,000 then it could touch Rs 4,590 in the year 2030 when BSE Index could touch 1,80,000. BSE Index is expected to go past 2,00,000 in the year 2030 at 14% compounding.

On the other hand people are comparing industrial leading Suzlon to companies which have never been leaders in their industry like YesBank, Reliance Power, PC Jewellers, Vodofone Idea, etc.