Mumbai: Brokerage firm Motilal Oswal has expressed strong optimism about Suzlon Energy, projecting a potential 42% upside for the renewable energy company’s stock. In its latest report released on Monday, the firm reiterated a “buy” rating with a price target of ₹80 per share, signaling confidence in Suzlon’s turnaround journey and growth prospects.
According to Motilal Oswal, Suzlon stands out for its ability to leverage favourable policy frameworks, localisation initiatives, in-house research and development, and a comparatively stronger execution model when measured against both Indian and global peers. The report comes at a crucial time as the renewable energy sector in India experiences strong momentum with government-led policy pushes.
In an interaction hosted by the brokerage, Suzlon’s CEO JP Chalasani emphasized his commitment to steering the company’s growth with no fixed “sunset clause” on his role. His remarks follow the recent resignation of CFO Himanshu Mody, who stepped down after four years, raising questions about management stability. Chalasani underscored that the leadership transition will not derail Suzlon’s broader strategy to strengthen its domestic presence and expand globally.
A central highlight of Suzlon’s potential lies in the government’s Approved List of Models and Manufacturers (ALMM) for the wind turbine sector. Chalasani suggested that the policy marks a significant step towards reducing import dependency and could evolve into a more comprehensive localisation mandate in the future.
“Such a move would accelerate domestic manufacturing investments, deepen supply chains, and create significant opportunities for well-positioned Indian OEMs like Suzlon,” Motilal Oswal noted in its assessment.
Motilal Oswal has valued Suzlon Energy at a price-to-earnings (P/E) multiple of 35 times its FY27 EPS estimates, slightly above the company’s two-year forward average of 27 times. The brokerage justifies the premium valuation by pointing to Suzlon’s improving earnings visibility and ramping execution cycle.
Analyst sentiment remains broadly favourable, with nine analysts covering the stock eight recommending a “buy” and one suggesting a “hold.” Notably, no analysts have issued a “sell” call, indicating widespread confidence in Suzlon’s growth trajectory.
Despite the positive outlook, Suzlon shares have faced volatility. On Friday, the stock closed nearly flat at ₹56.48 per share, a sharp 35% decline from its 52-week peak of ₹86. Analysts believe that if policy execution and demand visibility continue to improve, the stock could regain momentum in the medium term.
The focus now shifts to how quickly the localisation policy is implemented and whether Suzlon can capitalize on its positioning in a sector critical to India’s renewable energy ambitions. If execution keeps pace with expectations, analysts argue Suzlon could emerge as a frontrunner in India’s clean energy transformation.