Suzlon Energy shares drop 30% in six months, but Motilal Oswal sees 61% upside; here’s why

Shares of Suzlon Energy tumbled more than 3% on Wednesday, extending a sharp decline for the third consecutive session. Motilal Oswal Financial Services, however, remains bullish on the stock and sees 61% upside potential from current levels, citing several reasons.

The stock has fallen around 30% over the past six months, hitting a fresh 52-week low of Rs 39.13 apiece before paring some losses at Monday’s close.

Motilal Oswal on Suzlon Energy:

Motilal Oswal Financial Services, in its report, said it recently spoke with Suzlon Energy’s management regarding the company’s leadership restructuring under its Suzlon 2.0 vision. The company has announced a new management framework, including the formation of a Group Executive Council (GEC). JP Chalasani has transitioned from Group CEO to a member of the GEC, while Ajay Kapur has been appointed as Group CEO. Rahul Jain will continue as CFO.


The domestic brokerage said the revised leadership structure is designed to support expansion into solar and battery energy storage systems (BESS) while retaining leadership in the core wind business. The formation of the GEC is expected to guide the company’s medium- to long-term strategy, it added.

Suzlon Energy has also launched DevCo, a dedicated project development vertical aimed at decoupling early-stage project development from EPC execution.

“The initiative enables advanced groundwork for large, long-term client mandates and enhances pipeline preparedness. DevCo will focus on identifying high-potential wind and hybrid sites 3–5 years in advance using proprietary resource data, securing land, obtaining regulatory approvals, and arranging grid connectivity,” Motilal Oswal said. The brokerage added that this separation is expected to reduce execution bottlenecks, shorten contract timelines, and improve multi-year revenue visibility.

It noted that early project incubation allows customer engagement at the pre-construction stage (after roughly 25% of land aggregation is complete), lowering the interest during construction (IDC) burden and expediting financial closure, with projects subsequently transitioning to the EPC division for execution.

Suzlon’s management highlighted that state governments are actively engaged in rebidding or reconfiguring these projects, Motilal Oswal said. The brokerage added that the bidding trajectory should scale up once this blockade is cleared, with states playing a role in building renewable capacity, supporting a broader market revival.

“Based on our estimates, SUEL is currently trading at 9.9x FY28E EBITDA, in line with or below other capital goods players in the power sector,” it said, while reiterating its ‘Buy’ rating on the stock with a target price of Rs 66, implying an upside potential of more than 61% from the stock’s previous closing price.

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