Suzlon Energy Shares Up 2% As Motilal Oswal Initiates Coverage With 'Buy' — Check Target Price

Shares of Suzlon Energy gained 2% on Monday after domestic brokerage Motilal Oswal initiated coverage on the stock with a 'buy' rating, setting a target price of Rs 80. The brokerage believes that the company is transitioning from a turnaround phase to a growth story, driven by policy tailwinds.

The brokerage's optimistic stems from its discussion with Suzlon's Group CEO, J.P. Chalasani. The CEO noted his long-term commitment to the company and with no defined sunset clause. He also noted that the company is in 'advanced stages of appointing' a new Chief Financial Officer.

A major driver of the positive outlook is the government's push for domestic manufacturing through the Approved List of Models and Manufacturers or ALMM for wind turbine generators.

This is seen as the first step toward reducing India's import dependence, with the potential for more localisation mandates in the future. The brokerage notes that foreign Original Equipment Manufacturers may face complex and time-consuming challenges in localising their operations, which provides a competitive edge to well-positioned Indian firms like Suzlon.

Suzlon, is highlighted by the brokerage as the only Indian OEM with end-to-end research and development, design, and prototype testing facilities already in place domestically.

Another reason cited on initiation is Suzlon's strong order book, which management is confident will be maintained at at least 5 gigawatts in the coming years.

The company is also looking to expand its engineering, procurement, and construction segment, with a goal to increase its share to 50% of the order book by the fiscal year 2028. This move is expected to ensure better control over execution and further grow the order book.

Further, Suzlon plans to enter international markets, focusing on the Middle East and Europe, with export orders expected to begin by the end of financial year 2026.

At 9:55 am, shares of Suzlon Energy traded 2.02% higher at Rs 57.57 apiece on the BSE. The company commands a market cap of Rs 78,920.76 crore. The stock has surged 16% in six months and shed nearly 12% on a year-to-date basis.