Buy Suzlon Energy; target of Rs 83: Motilal Oswal

Motilal Oswal's research report on Suzlon Energy

Suzlon Energy (Suzlon) delivered a strong set of results, with deliveries and EBITDA coming in ~15%/38% ahead of our expectations. Management maintained its positive outlook and guided at least 60% YoY improvement in deliveries, revenue, EBITDA, and adjusted PAT for FY26. This guidance is broadly in line with our/street estimates and highlights management’s confidence in the sector. While FY27 guidance was not provided, management expects India-level wind installations to improve to 6/7-8/9GW in FY26/FY27/FY28 (FY25: 4.2GW). Following the earnings call, we largely maintain our FY26/27 earnings estimates but raise our TP to INR83. The early implementation of local content-related draft notification can be a strong catalyst for the stock.

Outlook

We arrive at our TP of INR83 by applying a target P/E of 35x to FY27E EPS. This is at a slight premium to its historical average two-year fwd P/E of 27x, given execution and earnings are just picking up for Suzlon.

For all recommendations report, click here