Suzlon Energy stock: ICICI Sec reiterates 'Buy' for more than 53% upside

Suzlon Energy share price target: ICICI Securities has reiterated 'Buy' call on wind turbine manufacturer Suzlon Energy

Suzlon Energy share price target: Domestic brokerage firm ICICI Securities has reiterated 'Buy' call on Suzlon Energy, saying the company maintains its stronghold in the existing wind business and that the tailwinds in renewables are here to stay.

The brokerage has set Suzlon Energy's share price target at ₹65, valuing the business at 32x FY28E EPS. The target price of ₹65 implies an upside of ₹22.35 or 53 per cent from Friday's close of ₹42.65.

ICICI Securities said that tailwinds in renewables have been blowing strongly over the last few years and are expected to sustain over the next five years. It said that once weighed down by debt and execution challenges, Suzlon Energy is now positioning itself for a stronger, broader future.

 

Suzlon Energy order book

Wind energy is once again gaining traction as India pushes for hybrid and firm renewable energy (FDRE) projects. With the government deciding to tender out at least 10GW of wind capacity every year, the brokerage said that Suzlon, being the market leader in the wind turbine industry, will be a "natural beneficiary of this shift".

"As a vertically integrated wind energy solutions provider with highly localised manufacturing, its growth has been synonymous with India’s wind power growth," the brokerage said. 

The sectoral tailwinds reflect in Suzlon’s order book (OB), which swelled to 6.4GW as of January 2026 -- 4.1x its FY25 wind turbine delivery volume.

The order book, it said, provides execution visibility for more than 2 years, and it "expects wind demand outlook to stay healthy in the medium term".  The brokerage added that the company has also been evaluating export opportunities.

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Suzlon 2.0 vision

With its existing wind business exhibiting strong potential, Suzlon Energy is now eyeing new frontiers. The company has announced a major leadership restructuring as part of its ‘Suzlon 2.0’ vision.

The new management is targeting the next leg of growth by aiming to transform the company into a full-stack, diversified renewable energy solutions provider (across wind, solar and battery energy storage systems or BESS).

Notably, to efficiently realise its Suzlon 2.0 vision, the Pune headquartered has announced a management reshuffling. It has formed a separate strategic body -- Group Executive Council (GEC) to lead the diversification and strategic initiatives. Further, it has onboarded a new CEO Ajay Kapur, who has been tasked to drive growth in the existing business.

ICICI Securities said that more details on the "transformation plan are expected to unfold over the next few months, and we believe the diversification could improve growth visibility."

Suzlon Energy debt

Over the past three years, Suzlon Energy has cleaned up its balance sheet and turned net cash positive.

The brokerage mentioned that Suzlon Energy is "back in shape" after a tumultuous period over the last decade. Over the past three years, the company has pared its debt from ₹120 billion in FY20 through various debt to equity conversions.

"With that, it became net cash positive with a cash reserve of ₹13 billion, as of September 2024, after a successful equity raise worth ₹20 billion in Q2FY24 for debt reduction," it said. "Since then, Suzlon Energy has improved its cash position significantly."

Any surprise in WTG (wind turbine generator) execution and order inflow, along with delay in execution, could pose risks for the company, the brokerage added.      ===========================================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.