Shares of a leading wind energy company surged 5 percent in today’s trade after brokerage firm Motilal Oswal initiated coverage with a bullish outlook, projecting a potential upside of 30 percent. The positive sentiment comes on the back of strong growth prospects in the renewable energy sector and the company’s robust order book, operational efficiency, and strategic positioning in the wind energy market.
During Wednesday’s trading session, the shares of Suzlon Energy Ltd reached an intra-day high of Rs.60.40 per share, rising 4.86 percent from its previous close of Rs.57.60 each. The shares have retreated since then and closed at Rs.60.00 apiece. Over the past five years, the stock has delivered over 2,400 percent returns.
Brokerage Recommendation
Brokerage firm Motilal Oswal has reaffirmed its bullish stance on Suzlon Energy, maintaining a ‘Buy’ rating with a price target of Rs.75 per share. This indicates a 30 percent upside from the current levels. The optimistic outlook is driven by favorable regulatory developments and Suzlon’s strategic operational focus.
A significant catalyst identified by the brokerage is the recently released draft of the Revised List of Models and Manufacturers (RLMM) for wind turbines, which proposes mandatory local content requirements. Motilal Oswal believes this move could be a game-changer for domestic players like Suzlon. While developers may seek a delay in implementation, the brokerage’s channel checks suggest strong consensus on the draft eventually being approved.
If implemented, the new policy could lead to two key developments. One is a likely reduction in competitive pressure as foreign players may find it harder to meet the local content requirements. The other is a strong chance for Suzlon to grow its market share since Indian manufacturers currently handle only 50 to 60 percent of new orders. Suzlon’s end-to-end domestic manufacturing across all key wind turbine components puts it in a strong position to take advantage of this shift.
Suzlon is also focusing on increasing the share of Engineering, Procurement and Construction contracts in its overall order book. The company aims to raise this from the current 20 percent to 50 percent over the medium term. Motilal Oswal believes this move will offer better delivery control and higher order visibility, helping Suzlon further strengthen its market presence.
Suzlon Energy Ltd has a global installed wind energy capacity of 20.9 GW and an annual manufacturing capacity of approximately 4,500 MW in India. With a 31 percent cumulative market share, Suzlon remains a key player in India’s wind energy sector, contributing significantly to the country’s renewable energy landscape.
Suzlon Energy Ltd has demonstrated its capability to manage multiple technologies under one roof, with a combined capacity of 1,905 MW in wind, 148 MW in solar, and 3,016 MW in assets under management. The company also oversees 963 MW of Balance of Plant (BOP) and boasts an impressive order book of 5,521 MW as of January 2025, reflecting a significant growth of 141 percent from 2,290 MW in January 2024.
According to its recent financial updates, Suzlon Energy Ltd reported consolidated revenue of Rs.2,975 crores in Q3 FY25, marking a 91 percent increase from Rs.1,560 crores in Q3 FY24. Additionally, the company saw a surge in net profit to Rs.388 crores, rising 91 percent from Rs.203 crores in the same period last year.
Written by – Siddesh S Raskar
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