Buy Suzlon Energy; target of Rs 80: Motilal Oswal

Motilal Oswal's research report on Suzlon Energy

We recently hosted Mr. J.P. Chalasani, Group CEO of Suzlon Energy (SUEL), for an expert session on the wind industry. Mr. Chalasani has reiterated his long-term commitment to SUEL, highlighting that his position as CEO carries no defined sunset clause. He noted that an approved list of models and manufacturers (ALMM) in wind turbine generator (WTG) manufacturing is likely the first step toward reducing India’s import dependence, with the government possibly extending localization mandates further in the coming years. He believes that foreign OEMs’ transition to building domestically may entail multiple complex and time-consuming challenges. However, more details about the localization order are still awaited and can add to the complexity of indigenization.

Outlook

Overall, we continue to believe SUEL remains well-placed to benefit from favorable policy tailwinds, localized supply chain advantages, in-house R&D, and execution readiness vs. global and domestic peers. We reiterate our BUY rating on SUEL with a target price of INR 80.