Fundamental Analysis: Suzlon Share Price vs BHEL Share Price - Which Stock Is Stronger?

Investors are usually interested not only in the share price but also in the fundamentals behind the price when comparing two companies within the same broad sector. When it comes to Suzlon Energy and Bharat Heavy Electricals Limited (BHEL), the decision is not simply whether one stock is cheaper or more expensive; the decision is about the business model, the financial health, and future growth.

Let's break down the Suzlon share price and the BHEL share price using key fundamental analysis metrics, so you can decide which company might be stronger for your portfolio.

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1. Business Overview - Different Paths in the Energy Sector

It is important to know what each company does before getting into the figures.

Suzlon Energy

Suzlon is one of India's largest renewable energy solutions providers, specialising primarily in wind energy projects. It designs, manufactures, installs, and services wind turbines, with an increasing focus on green, sustainable technologies. The company's growth is tied closely to India's renewable energy push and global clean energy trends.

BHEL

BHEL is a major state-owned engineering and manufacturing company, which specialises in heavy electrical equipment in the power generation, transmission, and industrial sectors. It has businesses in thermal, hydro, nuclear, and renewable sectors, which makes it more diversified than Suzlon but more vulnerable to legacy fossil fuel projects.

Investor takeaway: Suzlon has a more focused business on renewables, with a more focused business but greater sectoral risk. Diversification by BHEL is a source of stability but may imply a lower rate of adaptation to green-only markets.

2. Revenue and Profit Trends

Suzlon has undergone a turnaround in recent years, moving from years of losses to reporting profitable quarters. Cost restructuring, debt reduction, and rising demand for wind energy projects have boosted its margins. However, its revenue base remains smaller than BHEL's, which means it's more sensitive to order inflows.

BHEL, being a PSU giant, has a much larger order book, especially in power projects and industrial equipment. However, revenue growth has been uneven due to delays in large-scale infrastructure execution and slower movement in thermal power investments.

*Suzlon's unusually high FY23 profit margin was aided by one-off debt restructuring gains, so it may not be sustainable every year.

Investor takeaway: BHEL has scale; Suzlon currently shows higher profitability due to restructuring, but its recurring margins will likely be lower going forward.

3. Debt and Balance Sheet Strength

Debt levels are a critical factor for both companies.

• Suzlon has dramatically reduced its debt over the past three years, moving towards a leaner balance sheet. Lower finance costs give it more room to reinvest in operations.
• BHEL carries relatively low debt for a company of its size, which is a strength, but its working capital cycle can be stretched due to large government-linked projects.

Investor takeaway: Both companies are in a healthier debt position now than they were historically, but Suzlon's debt reduction story adds momentum to investor sentiment.

4. Sector Outlook and Growth Catalysts

Renewables Boom (Suzlon) - The Indian government's commitment to 500 GW of renewable capacity by 2030 bodes well for Suzlon. However, competition in the wind energy space is rising, and execution speed is key.

Infrastructure Push (BHEL) - With India investing heavily in infrastructure, power, and industrial capacity, BHEL could benefit from large thermal, hydro, and transmission projects. But the transition away from coal-based projects might weigh on long-term growth unless renewable orders pick up faster.

5. Valuation Metrics - What the Market is Pricing In

While share price alone doesn't tell you if a stock is expensive or cheap, comparing valuation ratios can help.

*As of early August 2025.

Suzlon trades at a lower earnings multiple than BHEL, which could make it more attractive for growth-oriented investors, provided earnings growth is sustained.

To understand the factors that influence these price movements in more detail, you can explorehow share price is calculated.

6. Dividend Policy

• Suzlon has not been a consistent dividend payer due to past losses, preferring to reinvest earnings in operations.
• BHEL, as a PSU, has a history of paying dividends, though payouts have varied depending on annual profits.

Investor takeaway: Income-focused investors may prefer BHEL, while growth-focused investors might lean towards Suzlon.

7. Risk Factors

Suzlon Risks

• High dependence on government renewable policies
• Execution risk in large wind projects
• Vulnerability to global supply chain disruptions in turbine components

BHEL Risks

• Dependence on large, slow-moving infrastructure projects
• Exposure to coal-based power projects that may decline over time
• PSU operational constraints and bureaucratic delays

Which Stock Looks Stronger?

Choosing between Suzlon and BHEL comes down to your investment style and risk tolerance.

• You might favour Suzlon if: You believe in the rapid expansion of renewables, can tolerate higher volatility, and are looking for turnaround stories.
• You might favour BHEL if: You want exposure to a large, diversified engineering giant with stable government contracts and moderate growth prospects.

To make this decision more effectively, you need real-time market data, access to historical financials, and the ability to compare valuations quickly. This is where Kotak Neo, an advanced trading app from Kotak Securities, can be invaluable.

Final Thoughts

Both Suzlon and BHEL are leaders in their respective niches within the energy and industrial equipment space, but they represent very different investment approaches. Suzlon offers a high-growth, high-volatility renewable play, while BHEL provides stability, scale, and dividends, but with slower earnings momentum.

Whichever stock you choose, ensure it fits your portfolio's broader strategy.