Motilal Oswal Projects 30% Upside in Suzlon Energy Shares Amid Sector Tailwinds
Suzlon Energy, a key player in India’s renewable energy landscape, has garnered renewed attention from investors after brokerage firm Motilal Oswal raised its target price on the stock, citing strong upside potential of up to 30%. The upgrade comes at a time when India’s wind energy sector is seeing a resurgence, fueled by supportive policy changes, rising demand for clean energy, and robust execution from domestic manufacturers. Suzlon, being one of the largest wind turbine manufacturers in the country, stands to benefit significantly from these trends.
Regulatory Tailwinds Boosting Prospects
One of the primary reasons behind the bullish outlook is the introduction of a revised RLMM (Revised List of Models and Manufacturers) notification by the government. This draft policy emphasizes the use of locally manufactured components in wind turbines. For Indian OEMs like Suzlon, this regulation could significantly increase market share by restricting competition from foreign players and encouraging project developers to choose domestic manufacturers.
Motilal Oswal analysts noted that Suzlon, with its integrated manufacturing facilities and strong domestic presence, is well-positioned to benefit from this shift. The company’s end-to-end capabilities, including R&D, manufacturing, project execution, and operations and maintenance, give it a strategic advantage in leveraging government-driven demand for local content.
Expanding Market Share and Execution Capabilities
India’s wind energy market, while historically underutilized, is now poised for a substantial comeback. Current data indicates that Indian OEMs are capturing only 50–60% of the new wind energy orders. Suzlon is expected to enhance its market share considerably in the coming years due to its longstanding industry presence and the push for localization.
The company’s ability to manufacture critical components in-house, such as nacelles, blades, and towers, reduces reliance on imports and makes Suzlon a preferred vendor in the wake of new policy reforms. Furthermore, its wide network of service facilities and expertise in maintenance strengthens its after-sales proposition — a critical factor in long-term contracts.
Financial Strength Reinforces Analyst Confidence
Suzlon’s recent financial performance has reinforced market confidence. In the fourth quarter of FY24, the company reported revenue of ₹2,200 crore, reflecting a 30% year-on-year growth. More significantly, EBITDA rose 53% to ₹360 crore, reflecting not only higher execution but also improved operational efficiency.
One of the most crucial financial milestones achieved by the company is its transition to being net debt-free. This move significantly reduces financial risk and allows Suzlon to focus on expansion, R&D, and order execution without the overhang of interest burden. The cleaned-up balance sheet also improves its creditworthiness, potentially helping it secure new contracts with favorable terms.
Robust Order Book Ensures Future Revenue Visibility
Another compelling reason behind Motilal Oswal’s optimism is Suzlon’s record-breaking order backlog. The company has an order book of 5.9 GW — its highest ever — providing revenue visibility for the next several quarters. This backlog indicates strong market trust in Suzlon’s execution ability and also showcases the demand revival in India’s wind energy sector.
Industry forecasts suggest that India will add 32 GW of wind capacity between FY25 and FY30. Suzlon is expected to be a major contributor to this growth. Its strong pipeline and proven track record in executing large-scale projects position it well to capitalize on the expected upturn in capacity addition.
Broader Market Support
Motilal Oswal isn’t alone in its bullish view. Other brokerage firms such as Morgan Stanley and JM Financial have also raised their target prices for Suzlon. Morgan Stanley recently upgraded Suzlon to ‘Overweight’ with a target price of ₹71, pointing to the company’s potential to increase its market share to around 40% by FY27. Similarly, JM Financial has a target price of ₹71, citing improved execution and a healthy backlog.
Investec also initiated coverage on Suzlon with a ‘Buy’ rating, indicating a 30% upside. According to these brokerages, Suzlon is well aligned with the Indian government’s renewable energy mission and stands out as one of the few fully integrated domestic players capable of delivering scale and quality.
Conclusion
The confluence of policy support, financial turnaround, increasing domestic demand, and strong execution capacity has made Suzlon Energy a compelling story in India’s green energy transition. With a robust order book, zero net debt, and improving profit margins, Suzlon is set to play a central role in India’s wind energy growth over the next decade. Motilal Oswal’s target upgrade, backed by fundamental and structural growth factors, reinforces investor confidence and indicates that Suzlon may well be on its way to delivering solid returns in the near future.
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