Suzlon Energy shares jump 5% after Motilal Oswal reiterates bullish view, sees 73% upside; Technicals signal caution
Suzlon Energy share price jumped nearly 5% on Monday, 12 October, after Motilal Oswal Financial Services reiterated its ‘Buy’ rating on the stock, with a target price of ₹65, implying an upside potential of around 73% from its current market price of ₹38. The brokerage expects earnings momentum to strengthen in the second half of FY27, supported by a strong order book, higher deliveries and rising wind power installations in India.
In its latest report, Motilal Oswal said Suzlon Energy's stock has corrected 31% over the past three months and is currently trading at 17.5 times its estimated FY28 earnings. This represents a 20% discount to its one-year forward price-to-earnings average of 22 times at minus one standard deviation, making the valuation attractive, according to the brokerage.
Motilal Oswal has retained its ‘Buy’ rating on Suzlon Energy with a target price of ₹65, based on 30 times its estimated FY28 earnings per share (EPS). The valuation multiple is slightly above the company's historical average two-year forward price-to-earnings ratio of 27 times.
The brokerage expects Suzlon's earnings to improve in the second half of FY27, as the wind energy business typically generates 60–65% of its annual EBITDA during the second half. It estimates deliveries will rise to 2.1 GW in the second half, up from 1.2 GW in the first half.
For FY27, Motilal Oswal projects total deliveries of 3.3 GW, representing 35% year-on-year growth, followed by 3.8 GW in FY28. The brokerage expects EBITDA to grow at a compound annual growth rate (CAGR) of 22% between FY26 and FY28, supported by improving execution and delivery visibility.
Suzlon Energy's order book stood at 5.9 GW at the end of the first quarter of FY27, with the company securing around 1.3 GW of order inflows in FY27 so far, according to Motilal Oswal.
The brokerage believes the existing order book provides complete visibility for its estimated deliveries through the third quarter of FY28. This strong order pipeline, combined with an expected ramp-up in execution, is likely to support revenue and earnings growth over the coming quarters.
The pace of execution will remain a key monitorable as Suzlon works towards its delivery targets for FY27 and FY28.
Motilal Oswal expects India's wind energy capacity additions to remain on track to meet the government's FY27 target. India added around 3 GW of wind capacity in the first half of FY27. Based on the historical trend of second-half installations being approximately 1.5 times those in the first half, the brokerage estimates another 4.5 GW could be added in the second half.
This would take total wind capacity additions for FY27 to around 7.5 GW, in line with the Ministry of New and Renewable Energy's expectation of 7.5–8 GW, according to the brokerage.
Rising electricity demand, particularly during evening peak hours, could further strengthen the case for wind power. Motilal Oswal noted that wind-solar hybrid and firm and dispatchable renewable energy (FDRE) projects could benefit from the need to meet peak power demand.
Citing the Economic Advisory Council to the Prime Minister's July 2026 paper, the brokerage highlighted that average May evening peak power prices increased from ₹8.08 per kWh in 2023 to ₹9.40 in 2025 and ₹9.71 in 2026. It believes elevated merchant power prices during late-evening hours improve the economics of wind capacity.
Beyond its existing wind turbine business, Motilal Oswal identified repowering, exports and the development company (DevCo) model as three potential growth drivers for Suzlon Energy.
The DevCo model has gained traction, with Suzlon booking more than 600 MW of orders within the first four months of FY27. These orders accounted for around 60% of the company's total order inflows during the period, according to the brokerage.
Repowering also presents a significant opportunity in India, where a substantial portion of the existing wind turbine fleet was commissioned 10–20 years ago. Motilal Oswal cited a potential repowering opportunity of up to 25 GW and noted that Suzlon expects to secure confirmed repowering orders by the end of FY27. The opportunity could scale up over the next two to three years.
Internationally, Suzlon is evaluating export opportunities across Europe, Australia, Latin America and Southeast Asia, with Australia and Europe emerging as promising markets.
Overall, Motilal Oswal's positive view on Suzlon Energy rests on attractive valuations following the recent correction, a strong order book, improving execution and multiple avenues for growth. However, the company's ability to meet delivery targets and convert its order pipeline into earnings will be crucial to sustaining the expected growth momentum.
Suzlon Energy's share price today opened at ₹38.29 apiece on the BSE; the stock touched an intraday high of ₹39.44 and an intraday low of ₹38.17 per share.
Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One, said Suzlon Energy remains in a sustained downtrend, trading below all its major exponential moving averages (EMAs), with technical indicators slipping into deeply oversold territory. The recent breakdown below the ₹40 level has further weakened the stock's technical outlook, keeping it under significant bearish pressure.
However, Krishan noted that a technical pullback cannot be ruled out following the sharp correction. The broader outlook is likely to remain bearish unless the stock sustainably reclaims its 21-day exponential moving average (21-DEMA). A decisive move above ₹42 would be needed to signal a meaningful improvement in momentum.
Virat Jagad, Senior Technical Research Analyst at Bonanza, said Suzlon Energy is trading near its major weekly support zone of ₹37– ₹38, but the overall trend remains bearish. The stock continues to trade below key moving averages, while the relative strength index (RSI) indicates weak momentum. He advised investors to avoid fresh buying at current levels, noting that a sustained reversal candle near ₹37– ₹38 could signal a potential bounce. However, he emphasised that traders should wait for confirmation of a reversal before considering fresh entry.
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