Suzlon Energy (SUZLON)

FairStock Score: 69/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham's glasses and Buffett's patience. Suzlon is a heavy electrical equipment maker with a market cap of ₹64,743 Cr and price ₹47.10. The balance sheet has clearly improved: debt/equity is only 0.03, Altman Z is 5.01, Piotroski F-Score is 8/9, and free cash flow is ₹343 Cr. Returns are impressive on paper: ROE 39.37% and ROCE 32.52%. Sales grew 16.11%, and the five-year revenue CAGR is 29.65%. Latest quarter sales were ₹4,236 Cr with net profit ₹445 Cr. PEG of 0.43 and P/E of 20.57 suggest the market is not paying an outrageous multiple if that growth is durable. But I must ask about the moat. Heavy electrical equipment is competitive and cyclical; high ROE and ROCE are good, but the figures alone do not prove durable pricing power. More troubling, profit growth is -11.78%. Then valuation: book value is ₹7.11, so P/B is 6.62. Graham Number is ₹16.14, DCF intrinsic value is ₹6.72. At ₹47.10, margin of safety is -164.36%. EV/EBITDA is -6.81, which I cannot treat as comforting. The company pays no dividend, and promoter holding is 11.73%. So this is not a Graham bargain. It may be a successful turnaround with a repaired balance sheet and strong returns, but the price already reflects a lot of hope. I would wait for either a much lower price or clear evidence that profit growth reaccelerates and free cash flow persists.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer