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News Topical, Digital Desk : Shares of Suzlon Energy Ltd. have the potential to rise by 54% from current levels, brokerage firm Motilal Oswal said in a report released on Tuesday, January 20. The brokerage maintained its "buy" rating on the stock and gave it a target price of ₹74, implying a potential upside of 54% from current levels.
The report states that Suzlon Energy shares have been under pressure recently due to investor concerns such as the cannibalization of solar energy's share in tenders due to the solar segment, the slow pace of solar energy installations, and increased competition in the segment.
What's new in the report?
According to Motilal Oswal, data centers, commercial and industrial (C&I) consumers, and PSUs together could generate 20-24 gigawatts (GW) of additional solar energy demand by 2030. This would be in addition to India's target of 100 GW by fiscal year 2030. Suzlon Energy's strategy to increase the EPC (engineering, procurement, and construction) share of its order book to 50% gives the company a strong competitive advantage. The report states, "The company's superior execution track record compared to domestic competitors and the limited participation of Chinese OEMs in the EPC space positions Suzlon favorably to win complex and large projects." Industry channel checks indicate that of the 40 GW of projects with pending Price Purchase Agreements (PPAs), approximately 17 GW are entirely solar, while the share of solar energy is negligible. Management also sees exports emerging as an additional growth driver, with orders expected to arrive in early 2027 and supplies starting in 2028. The report also noted that at current prices, Suzlon Energy's concerns have already been factored into the price, and the risk-reward appears favorable. Analysts rate Suzlon Energy a "consensus buy," with all nine analysts rating the stock a buy. "We should cross the 10 GW mark in the next two years," Girish Tanti, Executive Vice Chairman of Suzlon Group, told CNBC-TV18 in an exclusive interview, which took place during the World Economic Forum in Davos. Looking ahead, he said capacity could increase to 13 to 15 GW by 2030, supported by annual manufacturing capacity of around 20 GW and export demand. Suzlon Energy shares closed down 1% at ₹47.94 on Monday. The stock is down 37% from its 52-week high of ₹74.47, which is also equal to Motilal Oswal's target price.
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