Suzlon Energy, a prominent player in India's renewable energy sector, recently secured a 50 MW wind farm project from Bharat Petroleum Corporation Limited (BPCL). Despite this positive development, Suzlon's shares traded lower. This begs the question: Should investors buy, sell, or hold Suzlon shares?

The BPCL Order and Recent Wins

BPCL, a Navratna public sector undertaking, awarded the 50 MW wind farm project to Suzlon as part of its green energy transition strategy. This project is earmarked for Madhya Pradesh and will contribute to meeting the captive power requirements of BPCL's Bina and Mumbai refineries. BPCL aims to establish a 10 GW clean energy portfolio by 2040, aligning with its commitment to becoming a Net Zero Energy Company in Scope 1 & Scope 2 emissions by 2040.

This order adds to Suzlon's recent successes. In April 2025, the company secured a 100.8 MW wind order from Sunsure Energy and a 378 MW order from NTPC Green Energy. Notably, the NTPC Green Energy order is Suzlon's largest-ever. These wins underscore Suzlon's strong position in the Indian renewable energy market and its ability to secure significant projects.

Mixed Market Signals

Despite these positive developments, Suzlon's share price has experienced volatility. On May 7, 2025, Suzlon's share price closed at ₹54.64, up 1.75%. However, the stock has lost 16.38% on a year-to-date (YTD) basis. This indicates a bearish trend amidst the volatility. On the other hand, following the announcement of the BPCL order, Suzlon Energy shares rose by 2.2% to ₹55.

Order Book and Financials

As of March 28, 2025, Suzlon had a healthy order book of 5,622 MW, including the dispatches made during Q4 FY25. The company's total order book now stands at 5.9 GW, with Commercial & Industrial (C&I) customers representing 59% of this volume. This strong order book provides a solid foundation for future revenue and earnings growth.

Suzlon's financial metrics are showing positive trends:

• Return on Equity (ROE): 21.35%
• Debt-to-equity ratio: 0.06, indicating low debt levels
• Earnings per share (EPS): ₹0.84

Analyst Recommendations and Price Targets

Brokerages have a generally positive outlook on Suzlon. The average target price is around ₹72. Motilal Oswal Financial Services has set a price target of ₹70, considering a target PE ratio of 34x on its December 2026 earnings per share (EPS) estimate for Suzlon. JM Financial maintained a 'buy' rating on the stock with a price target of ₹80.

However, other analyses suggest a wider range for price targets. For 2025, the share price target could range from ₹53.98 to ₹88.07. The average price target for Suzlon share in 2025 is ₹70.50. For 2030, the share price target could range from ₹219.42 and ₹257.00.

Factors Influencing Suzlon's Share Price

Several factors contribute to Suzlon's stock performance:

• Strong order book: Suzlon's ability to secure large orders, such as the NTPC Green Energy and Sunsure Energy projects, boosts investor confidence.
• Government initiatives: India's ambitious renewable energy targets, including 500 GW of renewable energy capacity by 2030 and 100 GW in wind energy, create a favorable environment for companies like Suzlon.
• Investor confidence: Increased retail ownership indicates strong retail investor interest.

The Verdict: Buy, Sell, or Hold?

The decision to buy, sell, or hold Suzlon shares depends on individual investment goals and risk tolerance.

• Buy: Analysts are generally bullish on Suzlon, citing its strong order book, favorable government policies, and potential for growth. If you have a long-term investment horizon and believe in the growth potential of the renewable energy sector, buying Suzlon shares could be a good option.
• Hold: If you already own Suzlon shares and believe in the company's long-term prospects, holding onto your shares could be a reasonable strategy.
• Sell: Given the stock's volatility and recent losses on a year-to-date basis, some investors may consider selling Suzlon shares to lock in profits or mitigate potential losses.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.