NSEI:SUZLON

Stock Analysis Report

Executive Summary

Suzlon Energy Limited, together with its subsidiaries, manufactures and sells wind turbine generators and related components in India, the United States, Australia, Spain, South Africa, and Turkey.

Snowflake

Fundamentals

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Suzlon Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

SUZLON

7.1%

IN Electrical

3.8%

IN Market


1 Year Return

-56.8%

SUZLON

-21.3%

IN Electrical

6.0%

IN Market

Return vs Industry: SUZLON underperformed the Indian Electrical industry which returned -21.3% over the past year.

Return vs Market: SUZLON underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

SUZLONIndustryMarket
7 Day-5.6%7.1%3.8%
30 Day-16.4%-0.07%2.9%
90 Day-38.6%-2.4%2.9%
1 Year-56.8%-56.8%-18.8%-21.3%8.2%6.0%
3 Year-82.8%-82.8%-0.2%-3.5%23.0%16.7%
5 Year-78.9%-78.9%-1.4%-6.7%43.6%30.0%

Price Volatility Vs. Market

How volatile is Suzlon Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Suzlon Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUZLON (₹2.55) is trading below our estimate of fair value (₹28.14)

Significantly Below Fair Value: SUZLON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SUZLON is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: SUZLON is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUZLON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUZLON has negative assets, so we can't compare its PB Ratio to the IN Electrical industry average.


Next Steps

Future Growth

How is Suzlon Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUZLON is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SUZLON is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SUZLON is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SUZLON's revenue (45.3% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: SUZLON's revenue (45.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SUZLON's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Suzlon Energy performed over the past 5 years?

46.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUZLON is unprofitable, but has reduced losses over the past 5 years at a rate of 46.4% per year.

Accelerating Growth: Unable to compare SUZLON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SUZLON is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (16.9%).


Return on Equity

High ROE: SUZLON's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: SUZLON is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SUZLON is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Suzlon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SUZLON has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SUZLON has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SUZLON has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SUZLON's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SUZLON has a high level of physical assets or inventory.

Debt Coverage by Assets: SUZLON has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SUZLON has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SUZLON is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -10.2% per year.


Next Steps

Dividend

What is Suzlon Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SUZLON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SUZLON's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SUZLON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUZLON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SUZLON is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUZLON's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Suzlon Energy's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average management tenure


CEO

JP Chalasani (62yo)

3.5yrs

Tenure

₹57,068,500

Compensation

Mr. Jayaram Prasad Chalasani, also known as JP, serves as the Group Chief Executive Officer of Suzlon Energy Limited since April 4, 2016. Mr. Chalasani served as the Group Chief Executive Officer and Manag ...


CEO Compensation Analysis

Compensation vs. Market: JP's total compensation ($USD802.92K) is above average for companies of similar size in the Indian market ($USD282.64K).

Compensation vs Earnings: JP's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.6yrs

Average Tenure

61yo

Average Age

Experienced Management: SUZLON's management team is seasoned and experienced (9.6 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SUZLON's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • JP Chalasani (62yo)

    Group Chief Executive Officer

    • Tenure: 3.5yrs
    • Compensation: ₹57.07m
  • Tulsi Tanti (61yo)

    Founder

    • Tenure: 24.8yrs
    • Compensation: ₹24.00m
  • Antonius Wilhelmus van Megen (67yo)

    Vice President of International Corporate Development

    • Tenure: 15.8yrs
    • Compensation: ₹9.48m
  • Vinod Tanti (56yo)

    COO & Wholetime Director

    • Tenure: 8.9yrs
    • Compensation: ₹24.00m
  • Hemal Kanuga

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹5.79m
  • Dunc Koerbel

    Chief Technology Officer

    • Tenure: 0yrs
  • Anand Bagrecha

    Vice President of Accounting & Reporting

    • Tenure: 0yrs
  • Manish Jain (49yo)

    Vice President-Corporate Finance

    • Tenure: 20.8yrs
  • Viswakumar Menon

    Group Head of Corporate Communications

    • Tenure: 0yrs
  • Swapnil Jain

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Marc Desaedeleer (68yo)

    Non-Executive Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹440.00k
  • Tulsi Tanti (61yo)

    Founder

    • Tenure: 24.8yrs
    • Compensation: ₹24.00m
  • Per Pedersen (66yo)

    Non-Executive Independent Director

    • Tenure: 4.1yrs
    • Compensation: ₹520.00k
  • Vinod Tanti (56yo)

    COO & Wholetime Director

    • Tenure: 8.9yrs
    • Compensation: ₹24.00m
  • Girish Tanti (49yo)

    Non-Executive Director

    • Tenure: 23.8yrs
    • Compensation: ₹220.00k
  • Pratima Ram (69yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: ₹400.00k

Company Information

Suzlon Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suzlon Energy Limited
  • Ticker: SUZLON
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: ₹13.565b
  • Shares outstanding: 5.32b
  • Website: https://www.suzlon.com

Number of Employees


Location

  • Suzlon Energy Limited
  • One Earth
  • Hadapsar
  • Pune
  • Maharashtra
  • 411028
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532667BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2005
SUZLONNSEI (National Stock Exchange of India)YesEquity SharesININROct 2005
SUZENBDL (Bourse de Luxembourg)GDR EACH REP 4 SHS REG SLUUSDJul 2009

Biography

Suzlon Energy Limited, together with its subsidiaries, manufactures and sells wind turbine generators and related components in India, the United States, Australia, Spain, South Africa, and Turkey. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.