Shares of Suzlon Energy Ltd., which are currently trading near their 52-week low levels, could rise another 73% from current levels, brokerage firm Motilal Oswal projected in its note on Monday, October 12.
Motilal Oswal maintained its “buy” recommendation on Suzlon with a price target of ₹65 in its note. It highlighted five important reasons why the stock could see such significant upside:
Attractive Valuations After Correction
Suzlon Energy’s share price has corrected 31% over the last three months and is currently trading at 17.5 times its estimated financial year 2028 Earnings Per Share (EPS), which is a 20% discount to its one-year forward mean and one standard deviation below its historic multiple of 22 times.
Motilal Oswal called the valuations after the recent correction “attractive” and amidst improving earnings visibility.
“Given the seasonal nature of earnings with the second half contributing 60% to 65% of the company’s annualized Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), we expect earnings momentum to strengthen in the second half of financial year 2027 as deliveries may rise to 2.1 GW from 1.2 GW in the first half,” Motilal Oswal wrote in its note.
Strong Order Book & Earnings Visibility
At the end of the June quarter, Suzlon Energy’s order book stood at 5.9 GW, providing 100% visibility on Motilal Oswal’s delivery estimates until the third quarter of financial year 2028.
The brokerage expects Suzlon Energy’s EBITDA to grow at a Compounded Annual Growth Rate (CAGR) of 22% over financial year 2026-2028.
Wind Capacity Additions
India added 3 GW of wind capacity in the first half of the current financial year, according to Motilal Oswal, who also said that historically, as the second half installations have been 1.5x of those in H1, the implies addition of nearly 4.5 GW in the second half would take the FY27 additions to nearly 7.5 GW, which is in-line with the Ministry of New & Renewable Energy’s expectation of 7.5 GW to 8 GW.
The Evening Peak Demand Tailwind
Rising power demand, mainly during evening peak hours, should support greater deployment of wind capacity through wind-solar hybrid and FDRE projects, Motilal Oswal said.
“We believe strong merchant power prices in late evening reinforce the economic case for wind capacity,” the brokerage said.
Three New Growth Engines
Motilal Oswal wrote in its note that Suzlon’s DevCo model has gained strong traction with orders worth over 600 MW booked within four months of the financial year and accounts for 60% of the total orders.
Internationally, Suzlon is also evaluating export opportunities in Europe, Australia, Latin America and Southeast Asia, with Australia and Europe emerging as promising markets, the brokerage noted.
Additionally, repowering in India presents a potential opportunity of up to 25 GW, given that a major portion of the existing wind fleet was commissioned between 10-20 years prior and Suzlon is expecting to secure confirmed repowering orders by the end of the current financial year, with opportunities scaling up in the next two to three years.
Suzlon Energy stands to benefit from regulatory tailwinds mandating local content, a robust providing strong revenue visibility and execution improvements through proactive land acquisitions and EPC expansion initiatives, Motilal Oswal wrote.
12 analysts have coverage on Suzlon Energy, of which 10 have a “buy” rating, and two others have a “hold”. No analyst tracking the stock has a “sell” recommendation. The consensus estimates of price targets implies an upside potential of 67% from current levels.
Shares of Suzlon Energy ended 3.2% higher on Friday, snapping a two-day losing streak at ₹37.6. The stock is down 28% so far this year.