Motilal Oswal reiterates 'Buy' on Suzlon Energy; 42% upside potential seen

Motilal Oswal has reiterated its ‘Buy’ rating on Suzlon Energy with a target price of Rs 80, implying an upside potential of around 42% from current levels. The brokerage shared its view in a research report released on Monday.
Shares of Suzlon Energy gained 2.4% on Monday to touch an intraday high of Rs 57.84 apiece on the NSE.

Valuation and Growth Outlook

Motilal Oswal's target price of Rs 80 is based on a 35x P/E multiple applied to FY27E earnings, slightly above the stock’s historical two-year forward P/E average of 27x. The premium valuation reflects Suzlon’s improving execution, growing earnings visibility, and favourable regulatory environment.


"Key drivers for Suzlon Energy's stock include strong regulatory support through localisation mandates like ALMM, which promote domestic manufacturing. The company also benefits from a solid order book that offers clear revenue visibility, along with improved execution capabilities driven by proactive land acquisition and expansion of its EPC operations."

From Turnaround to Growth: Suzlon’s Strategic Momentum

Motilal Oswal hosted J.P. Chalasani, Group CEO of Suzlon Energy, for an expert session focused on developments in the wind energy sector. Chalasani reiterated his long-term commitment to the company, clarifying that his tenure as CEO has no predefined endpoint, signalling sustained leadership stability during a critical phase of growth.

He emphasised the strategic significance of the government’s push for localisation in wind turbine generator (WTG) manufacturing, especially through the implementation of the Approved List of Models and Manufacturers (ALMM). This move, he believes, marks a pivotal step in reducing India’s dependence on imports and could lead to further regulatory mandates for domestic content.

While acknowledging the challenges foreign OEMs may face in adapting to these localisation norms, Chalasani underlined Suzlon’s readiness, backed by its localised supply chain, in-house R&D capabilities, and execution strength — positioning it favorably against both domestic and global peers.

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Chalasani’s reaffirmation of his leadership comes at a time when the company is also in the advanced stages of appointing a new Chief Financial Officer (CFO), indicating efforts to further strengthen its executive team.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)