Synopsys: Suzlon Energy is in focus after Motilal Oswal gave the highest upside of 24% amongst any other analysts. It cited strong order book execution and many different factors for this uptick.
The shares of this renewable energy solution provider are in focus after the company fetched the highest ever upside target of 24 percent from its current level. In this article, we will discuss what led to the uptick.
With a market capitalization of Rs 89,563 crores, the shares of Suzlon Energy Ltd are currently trading at Rs 65.9 per share, down by 23.4 percent from its 52-week high of Rs 86.04 per share. Over the past five years, the stock has delivered a multibagger return of 1,300 percent.
Leading brokerage firm, Motilal Oswal, has assigned a Buy call on the stock with a target price of Rs 82 per share, signalling an upside potential of 24.39 percent from its Friday closing price of Rs 65.92 per share.
The brokerage cited that the government plans to adopt a new rule called the Revised List of Models and Manufacturers (RLMM) by the second quarter of FY26. This rule will require power project developers to use more Indian-made equipment.
However, developers have asked for a delay of up to one year in its implementation. They believe this will give the industry enough time to get ready for the new local content rules.
The brokerage also cited that Suzlon is a strong candidate for the upcoming 1.5 GW NTPC orders. The company is expected to secure around 4 GW of new orders in FY26, raising its closing order book to 6.56 GW.
The gradual phase-out of the Inter-State Transmission System (ISTS) waiver over the next four years should reduce congestion in certain states and help with smoother project execution. Also, the growing share of engineering, procurement, and construction (EPC) contracts in the order book, now at 50 percent, is likely to improve execution visibility.
Financial Highlights
The company delivered impressive financial results in FY25, with revenue soaring over 66 percent to Rs 10,890 crore in FY25 from Rs 6,529 crore in FY24. Net profit also surged significantly, rising by more than 213 percent to Rs 2,072 crore compared to Rs 660 crore the previous year.
However, it is to be noted that the sharp jump in profit was primarily driven by a deferred tax gain of Rs 639.42 crore during FY25, which significantly boosted the bottom line.
Suzlon Energy Limited is a significant wind energy company focused on the sales and manufacture of wind turbine generators and components in India as well as global markets.
Additionally, it carries out operations, maintenance, and project execution for wind projects. It also leases land, sells foundry and forging components, generates power, and conducts solar energy activities.
Written by Satyajeet Mukherjee
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