Motilal Oswal sees 43% upside for Suzlon; strong outlook lifts stock 2%

Motilal Oswal has a 'Buy' rating on Suzlon Energy with a target price of ₹74, an upside potential of 43 per cent from the previous close

Motilal Oswal Financial Services said Suzlon Energy expects a healthy demand environment for wind power despite a slowdown in central renewable energy tenders, following its interactions with the senior leadership during its Manufacturing Day event held on December 4-5 at its Pondicherry plant.

 

Shares of Suzlon Energy rose over 2 per cent on Monday, taking positive cues from Motilal Oswal's bullish view. The brokerage has a 'Buy' rating on the stock with a target price of ₹74, an upside potential of 43 per cent from previous close. 

 

It noted that management sees only a limited impact from the recent dip in central renewable bids, where around 40 gigawatts of projects currently lack power purchase agreements. Suzlon highlighted that nearly 15 Gigawatt (Gw) of wind orders remain in the pipeline at various bidding and award stages.

 

Suzlon's EPC-first approach, built on securing land parcels across about 23 Gw of wind-rich sites nationwide, offers a strategic advantage over domestic and Chinese peers, Motilal Oswal said. The company expects exports to emerge as a key growth driver, with its existing turbine platforms close to becoming export-ready and more clarity expected over the next few quarters.

 

Management reiterated its confidence that India can reach 10 Gw of annual wind installations by FY28, driven by accelerating demand from data centers, artificial intelligence workloads, and rising consumption in the commercial and industrial segment. The company is also planning three new smart-blade factories, two in Gujarat and Karnataka, and a third location to be finalised within the next two to three months, to improve turnaround time and logistics efficiency.

 

Suzlon reaffirmed India's long-term wind potential of 100 Gw by 2030, emphasising that a higher share of wind generation is key to achieving the country’s lowest-cost energy mix. 

 

Over the longer horizon, India's renewable capacity is projected to surge from about 180 Gw in FY25 to nearly 1,600 Gw by 2047, it said. Wind capacity alone could rise from 53 Gw today to roughly 400 Gw, tapping just a little over one-third of India’s total wind resource.

 

Motilal Oswal added that Suzlon's strong operational track record, over 95 per cent of its turbines continue to meet original lifecycle performance assumptions, positions the company well to benefit from the multi-decade growth opportunity in India’s clean energy buildout.  CATCH STOCK MARKET LIVE UPDATES TODAY

Suzlon stock price movement

Suzlon Energy's stock rose as much as 2.45 per cent during the day to ₹53 per share. The stock pared gains to trade 2 per cent higher at ₹52.8 apiece, compared to a 0.38 per cent decline in Nifty 50 as of 10:17 AM. 

 

Shares of the company rose for the second highest session. The counter has fallen 15 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. Suzlon Energy has a total market capitalisation of ₹72,425.15 crore.