Suzlon Energy shares rallied nearly 5% on Monday, even as the broader market traded lower, with Motilal Oswal retaining its ‘Buy' rating on the stock and setting a target price of Rs 65.
The brokerage sees potential upside of 71% from current levels, on the back of an attractive valuation, a strong order book and improving earnings visibility.
The renewable energy stock climbed as much as 4.94% to hit an intraday high of Rs 39.44 per share. At 11:53 am, Suzlon Energy shares were trading near the day's high at Rs 39.16, up 4.20%. In comparison, the BSE Sensex was down 0.8% at 71,891.
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Trading activity in Suzlon Energy remained elevated, with 43.37 lakh shares worth Rs 16.86 crore changing hands on the BSE. On the NSE, 736.90 lakh shares worth Rs 286.88 crore were traded.
Motilal Oswal On Suzlon Energy: Why The Brokerage Retains 'Buy'
Motilal Oswal expects India's wind installations to reach a new high, supported by rising power demand, stronger evening peak prices and an improving project pipeline.
The brokerage believes these factors, coupled with Suzlon's order book and expected delivery ramp-up, could support earnings growth over the coming quarters.
Attractive Valuation And Improving Earnings Visibility
Suzlon Energy's stock price has corrected 31% over the past three months and is currently trading at 17.5 times its estimated FY28 earnings per share (EPS), according to Motilal Oswal. This represents a 20% discount to the stock's one-year forward average price-to-earnings multiple minus one standard deviation (SD) of 22 times.
The brokerage expects earnings momentum to strengthen in the second half of FY27, given the seasonal nature of the company's business. The second half typically contributes 60-65% of annual earnings before interest, taxes, depreciation and amortisation (EBITDA).
Deliveries are expected to rise to an estimated 2.1 GW in the second half of FY27, compared with 1.2 GW in the first half. Motilal Oswal estimates Suzlon Energy's EBITDA to grow at a compound annual growth rate (CAGR) of 22% over FY26-FY28.
Strong Order Book Provides Delivery Visibility
Suzlon Energy's order book stood at 5.9 GW at the end of the first quarter of FY27, with approximately 1.3 GW of order inflows recorded in FY27 year-to-date.
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According to Motilal Oswal, the existing order book provides 100% visibility on its estimated deliveries through the third quarter of FY28, strengthening the company's earnings outlook.
India's Wind Capacity Additions On Track
India added approximately 3 GW of wind capacity in the first half of FY27. Based on historical trends, when second-half installations have typically been 1.5 times those in the first half, the country could add around 4.5 GW in the second half.
This would take total wind capacity additions for FY27 to approximately 7.5 GW, in line with the Ministry of New and Renewable Energy's expectation of 7.5-8 GW, Motilal Oswal said.
Evening Peak Power Demand Could Support Wind Energy
Rising electricity demand, particularly during evening peak hours, could strengthen the case for greater wind capacity deployment through wind-solar hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects.
Citing the EAC-PM paper published in July 2026, Motilal Oswal highlighted the rise in average May evening peak power prices from Rs 8.08 per kWh in 2023 to Rs 9.40 in 2025 and Rs 9.71 in 2026.
The brokerage believes stronger merchant power prices during late evening hours reinforce the economic case for additional wind capacity.
Suzlon Energy Share Price Target
Motilal Oswal has retained its ‘Buy' rating on Suzlon Energy with a target price of Rs 65, based on 30 times estimated FY28 EPS. The valuation multiple is slightly above the stock's historical average two-year forward price-to-earnings multiple of 27 times.
Against the prevailing market price of around Rs 38, the target implies an upside potential of approximately 71%, according to the brokerage's estimates.
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