Suzlon Energy shares drop 30% in a year, but Motilal Oswal screams Buy. Here's why it sees 73% upside

ETMarkets.com

Suzlon Energy draws a bullish outlook as the brokerage anticipates an earnings pickup.

The company's shares jumped 3% in early trade to Rs 38.69 apiece on NSE on Monday morning after Motilal Oswal reiterated its bullish ‘Buy’ call on the stock. The domestic brokerage explained that after the recent correction, which has extended over the past three months, the stock trades at a 20% discount to its historical averages.

Suzlon Energy's earnings momentum to strengthen in H2: Motilal Oswal

Given the seasonal nature of earnings with the second half typically contributing 60-65% of annual EBITDA, Motilal Oswal expects earnings momentum to strengthen in the second half of FY27 as deliveries are expected to rise to 2.1 GW from the estimated 1.2 GW in the first half. It noted that Suzlon’s order book stood at 5.9 GW as at the end of Q1 FY27, providing 100% visibility on Motilal’s estimated deliveries through the third quarter of FY28. The domestic brokerage expects Suzlon Energy to deliver EBITDA CAGR of 22% over FY26-28.

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India added around 3 GW of wind capacity in the first half of FY27. Historically, installations in the second half have been 1.5x those in the first half; the implied addition of around 4.5GW in H2 FY27 would take FY27 additions to nearly 7.5 GW, in line with the MNRE’s expectation of 7.5-8 GW, Motilal Oswal said. “Rising power demand, particularly during evening peak hours, should support greater deployment of wind capacity through wind-solar hybrid and FDRE projects,” it added.

“Suzlon Energy stands to benefit from regulatory tailwinds mandating local content (ALMM for wind), a robust order book providing strong revenue visibility, and execution improvements through proactive land acquisition and EPC expansion initiatives,” said Motilal Oswal as it retained its ‘Buy’ call on the shares of the renewable energy player with a target price of Rs 65 apiece, implying 73% upside potential.

Suzlon Energy share price

Suzlon Energy shares have fallen more than 12% in one month and 26% in 2026 so far, dropping nearly 30% in one year.

In the longer term, the stock has gained more than 42% in three years and delivered multibagger returns of more than 470% in five years. The company has a market capitalisation of more than Rs 52,813 crore.

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