JM Financial lowers Suzlon Energy target price to Rs 71

JM Financial has given a "Buy" recommendation for Suzlon Energy, setting a target price of Rs 71. The company is showcasing growth potential with a strong order book of 5.9GW and plans for expansion. Recently, Suzlon reported significant financial gains, including a total income of Rs 3002.36 crore for the last quarter, representing a 41.54% increase from the previous quarter. The net profit for this period was Rs 387.76 crore. Currently, Suzlon Energy's stock is priced at Rs 58.08. JM Financial predicts that this target can be met within a year. Established in 1995, Suzlon is a small-cap company in the power sector with a market capitalization of Rs 78,830.34 crore. The company has experienced a robust performance in recent quarters, with total income growing by 91.27% compared to the same quarter last year. The management team includes several key figures, such as Mr. Vinod R Tanti and Mr. Girish R Tanti. Walker Chandiok & Co. LLP serves as the company’s auditors. Suzlon is optimistic about industry recovery and resolving execution issues in the next few quarters. Their 3MW wind turbine generators have received positive feedback. Recent visits to their assembly plant indicated plans to expand production capabilities. The plant's output is set to increase from 3.15GW to 4.5GW with improvements being made, including the conversion of warehouse space into a new assembly shop. Although the target price was lowered from Rs 80 to Rs 71, JM Financial continues to endorse buying the stock. This adjustment reflects a moderation in projected earnings due to expected challenges in growth beyond FY27.