Suzlon vs IREDA: Which Green Energy Stock to Buy Now?

Suzlon vs IREDA: The two of the best green energy stocks Indian renewable energy development agency (IREDA) and Suzlon Energy are showing positive performance however the returns are almost same in the last one year. Nonetheless, both companies are leading green energy picks for investors. Both the companies are working in the field of green energy development however their business model, share performance and future plans are different from each other due to which investors are confused picking the right green energy share to diversify their portfolio.

In this article we will discuss the business model, share performance, price targets, future outlook, advantages and disadvantages between these two companies so that you can easily choose a good company for investment.

1) Suzlon Energy (NSE: SUZLON)

Suzlon Share Price NSE

Suzlon’s share price closed at Rs 57.95 on Monday, January 20 with a gain of 1.95% on NSE.  The stock hit a fresh 52-week of Rs 86.04 in September while the 52-week low is Rs 35.50. In the past 5 days the shares have shown a bullish trend with a gain of 3.00%. With this the market cap of the company reached Rs 1,05,873.35 crore.

Suzlon Energy Business Model

Suzlon energy is a leading wind energy solutions provider. According to the information available on its official website, the company is operating over 17 countries on wind energy development projects. Moreover, the company also generates electricity, however the main business of the company is producing wind energy turbine generators, forging and foundry components, and also handles wind energy projects including operation and maintenance services.

Suzlon Fundamental Analysis 

Suzlon energy is mainly focused on reduction of debt, it significantly decreased its debt by Rs 1,695.82 crore. Currently Suzlon Energy has a debt of Rs 636.18 crore. The TTM/PE ratio of the company is higher at 261.20 while the sector PE is 105.877. The company has shown negative profit growth in the last year with -95.68% however the sales growth is positive 7.51%. The return on equity (ROE) is 3.74% however the ROCE has increased to 7.98% in the last few years. The promoters holding is low 13.25% however promoters pledging is 0 which is good for the company.

Also Read: Suzlon Energy Share Price Target Upto 2050

Suzlon Share Performance 

The shares of Suzlon energy have offered negative returns of 11.30% so far this year. In the last 1 year, the shares have zoomed 40.83%, similarly it has given 2,419.57% of impressive returns to shareholders in the last 5 years.

What is the Future of Suzlon Energy

The demand for renewable energy in India is increasing every year. A total 10% of the wind energy is generated in India out of the total generation worldwide. By 2030, the wind energy demand is projected to reach 2,000GW worldwide, reported by Global wind energy council. As the demand of wind energy is increasing over the years, this creates a great opportunity for the companies like Suzlon energy and others working in this sector. In addition, the company plans to expand its wind energy projects in Rajasthan along with Juniper green energy which will generate more revenue for the company.

Suzlon Price Target 

According to experts, Suzlon energy share price target is expected to reach a maximum Rs 142.63 by the end 2025

2) Indian Renewable Energy Development Agency (NSE: IREDA)

IREDA Share Price NSE

IREDA shares closed at Rs 207.40 after the market hours of Monday, January 20 on NSE with a gain of +0.14%. The 52-week high is Rs 310 and 52-week low is Rs 116 respectively. With this the market cap of the company reached Rs 55,865.19 crore.

IREDA Business Model

Indian renewable energy development agency (IREDA) is also working in the field of generating green energy i.e. solar energy, hydrogen green energy and other renewable energy as well. The company mainly provides financial aid and services to develop renewable energy projects which are controlled by the Ministry of New and Renewable Energy (MNRE).

IREDA Fundamental Analysis

The company has shown positive financial performance in the last 5 years. The sales growth is up by 42.56% and profit growth by 44.83% respectively in the last 1 year. The ROE and ROCE is 17.28% and 9.29% respectively. 

IREDA Share Performance

IREDA emerged as a multi-bagger stock for shareholders. Since its IPO debut in November, 2023 the share price has increased like a bullet train from Rs 50 to a 52-week high Rs 310. The shares of IREDA have offered a negative return of 6.48% YTD and all-time gain is 230.52%.

Also Read: IREDA Share Price Target Upto 2050

What is the future of IREDA?

The Government of India is focused on developing green energy projects amid the increasing demand of power and electricity that’s why they are implementing new policies and schemes so that carbon dioxide emissions can be reduced. IREDA is a company that plans to store green energy from various renewable sources. The company aims to produce 5 metric tonnes of hydrogen energy by 2030 also involved in developing battery manufacturing, pump storage etc. So IREDA will take advantage of this growing demand for green energy which will drive more revenue for the company. As the profit increases, the share price will also increase.

IREDA Price Target

According to experts, IREDA’s projected price target for 2025 is Rs 485 by the end of the year.

Suzlon vs IREDA: Which Green Energy Stock to Buy Now?

The most important question for investors is which company will give multi bagger returns in the long term so that they can invest accordingly. To clarify this, IREDA can be a great option as it is involved in various energy development projects which creates good opportunities to capitalize on the market trend and offer impressive returns in the short term. However, Wind energy has also a huge demand due to which shares like Suzlon will be a good option in the long term prospective. Overall, both the companies are doing well in their respective fields. Investors should diversify their portfolio as all green energy shares have a bright future.

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