Suzlon Shares Rally Almost 20% In Five Sessions With More Upside Potential — Check Target Price

Suzlon Energy shares have continued their strong upward momentum, rising nearly 19% over the past five trading sessions and around 28% in the last one month, as investors bet on a structural improvement in India's power supply dynamics and a sharp revival in wind energy additions.

The rally has come amid renewed optimism following a bullish report by JM Financial Institutional Securities, which has reiterated its BUY call on the stock with a 12‑month target price of Rs 64, implying an upside of about 30% from current levels.

Why More Upside?

According to JM Financial, Suzlon is emerging as an “unintended beneficiary” of the ongoing Middle East crisis, which has significantly disrupted gas‑based power generation in India. Gas‑based capacity availability during evening hours has dropped sharply, creating a power supply shortfall of nearly 8 GW during non‑solar hours.

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This has coincided with a shift in peak power demand towards hot and humid evenings, particularly during El Nino years, when solar generation drops sharply after sunset. With nearly 80 GW of solar capacity vanishing at night, the stress on evening supply has intensified.

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Wind Energy Moves Into Focus

The brokerage highlights that wind energy has a strong diurnal and seasonal complementarity with solar power. Wind speeds typically pick up during late afternoons and evenings, while nearly 80% of annual wind generation occurs during the southwest monsoon, when power deficits tend to peak.

The Ministry of Power is now targeting the addition of 2.4 GW of wind capacity in Q1 FY27, well above the current quarterly run rate. JM Financial estimates that 8–10 GW of wind projects could be commissioned in FY27, marking one of the highest annual additions on record.

Execution Turnaround Key For Suzlon

Suzlon, which had earlier struggled with a widening gap between deliveries and installations, is expected to report a sharp pick‑up in commissioning during H1 FY27. This is likely to boost cash flows and reignite order inflows, addressing investor concerns around execution.

JM Financial values the stock at 25x FY28 earnings, factoring in strong delivery growth over the next three years — a case that, coupled with favourable macro tailwinds, supports the recent rally and the potential for further upside.

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