Motilal Oswal Sees 42% Growth in Suzlon Energy

Brokerage firm Motilal Oswal is projecting a 42% upside potential for shares of Suzlon Energy, as part of its latest note on the renewable energy player on Monday, September 1.

Motilal Oswal has

maintained its "buy" rating on the stock with a price target of ₹80 per share. It continues to believe that Suzlon remains well-placed to benefit from favourable policy tailwinds, localised supply chain advantages, in-house R&D, and execution and readiness in comparison to global and local peers.

The brokerage hosted Suzlon CEO JP Chalasani for an interaction, where he highlighted that his position carries no defined sunset clause and that he remains committed to turning around and build the business further. Suzlon Group CFO Himanshu Mody recently quit after four years at the position.

Suzlon's CEO noted that an Approved List of Models and Manufacturers (ALMM) in the wind turbine generator manufacturing, is likely to be the first step towards reducing India's dependence on imports with the potential of the government extending localisation mandates further in the coming years. More details on the localisation order though, are still awaited.

"Such a move would accelerate domestic manufacturing

investments, deepen supply chains and create significant opportunities for well-positioned Indian OEMs like Suzlon," Motilal Oswal said in its note.

Motilal Oswal is valuing Suzlon Energy at a price-to-earnings multiple of 35 times its financial year 2027 Earnings Per Share (EPS) estimates, which is at a slight premium to its historical average two-year forward price-to-earnings multiple of 27 times, given that execution and earnings are just picking up for the company.

Nine analysts have coverage on

Suzlon Energy, of which eight have a "buy" rating, and one has a "hold" recommendation. The stock does not have any "sell" recommendation.

Shares of Suzlon Energy ended little changed on Friday at ₹56.48. The stock is down 35% from its recent 52-week high of ₹86.