The leading domestic brokerage firm, Motilal Oswal, has reiterated a “Buy” rating on Suzlon Energy in its latest report. The brokerage has set a target price of Rs 80 for this renewable energy sector stock. This translates to an upside potential of 42% from the current levels
According to the brokerage report, Suzlon remains well placed to benefit from the government’s push for renewable energy, supportive policy measures, and also of its unique position as India’s only fully integrated wind turbine manufacturer.
Let’s take a look at the 5 reasons why the brokerage is bullish on the stock-
Motilal Oswal on Suzlon: Why the optimism?
Motilal Oswal’s bullish call on the stock comes from a mix of policy support, execution strength, and a strong order pipeline. As per the brokerage house report, the government’s push for domestic manufacturing in the renewable space is expected to change industry dynamics, especially with the introduction of Approved List of Models and Manufacturers (ALMM) for the wind segment.
“With ALMM (Wind), the government’s intent is clear – to boost domestic manufacturing, improve product quality for Indian conditions, position India as a global wind export hub, and strengthen energy security,” the report noted.
Motilal Oswal on Suzlon: Leadership reiterates long-term commitment
According to the brokerage report, CEO JP Chalasani has reiterated his long-term commitment to the company. “My position as CEO carries no defined sunset clause and my return is driven by a clear strategic purpose. I remain committed to turning around and building the business further,” the report added.
The report also noted that Suzlon is in advanced stages of appointing a new Chief Financial Officer.
Motilal Oswal on Suzlon: Expanding order book and EPC push
As per the brokerage report, the company has maintained a strong pipeline and expects to keep at least 5 GW of order backlog intact in the coming years.
Furthermore, the brokerage report citing the management added, “The EPC segment currently accounts for 22% of the order book and Suzlon Energy aims to increase the share to 50% by FY28.”
Motilal Oswal on Suzlon: Looking beyond Indian shores
Apart from enhancing its domestic presence, this renewable energy sector company has also set its eyes on exports. The company is preparing to enter markets like the Middle East and Europe, with supply expected to begin by FY27.
As per the brokerage house report, Suzlon Energy is also planning to focus solely on equipment supply in overseas markets, avoiding the complexities of EPC execution abroad.
The US market, however, remains a question mark due to tariff challenges. Still, as per the brokerage, these global moves could provide Suzlon Energy with additional revenue streams while keeping execution risks under control.
Motilal Oswal on Suzlon: Valuation call
On valuation, Motilal Oswal assigns a target P/E multiple of 35x to Suzlon’s FY27 earnings, a premium to its historical average. The brokerage added, “We arrive at our target price of Rs 80 for Suzlon Energy…given execution and earnings are just picking up for Suzlon Energy.”