Suzlon share price: Anand Rathi re-initiates coverage on this multibagger stock, sees 23% upside

Mint

14 hours ago

Suzlon share price: Backed by the stellar financial restructuring and sectoral tailwinds, domestic brokerage Anand Rathi has re-initiated coverage on multibagger renewable energy stock Suzlon Energy with a 'Buy' rating.
Suzlon, the leader in India's wind turbine market, with an installed capacity of 15.1GW, commands a nearly 30% market share. This makes the company well-positioned to capitalise on India's growing renewable energy demand.
Demand for electricity in India is expected to rise at a steady 5-7% over 2025-30. India's installed power generation capacity was 475GW in FY25, according to the Ministry of Renewable Energy. By 2030, this is projected to rise to 777GW, with renewables contributing 500GW, signalling a major shift in the country's energy landscape.
This clean-energy transition will be primarily driven by solar, hybrid (solar + wind), and FDRE (solar + wind + battery) projects, underpinned by supportive policies, falling technology costs and India's broader de-carbonisation goals, Anand Rathi said.
Additionally, the brokerage is impressed by the smart turnaround staged by the company, in terms of the reduction in debt. "The company underwent massive restructuring to reduce its debt. This financial engineering story propelled it to a net cash of a healthy ₹ 8.3 bn today, a testament to its disciplined revival strategy," Anand Rathi said.
Its record-high order book of 5.6GW is 3.6x its FY25 execution volumes, offering strong long-term growth assurance and ensuring a steady project execution pipeline.
In line with a robust turnaround, Suzlon Energy posted a five-fold jump in its consolidated net profit to ₹ 1,181 crore for the March quarter, mainly on the back of higher revenues. The company reported a consolidated net profit of ₹ 254 crore in the quarter ended March 2024, a BSE filing showed. Its total income rose to ₹ 3,825.19 crore in the quarter from ₹ 2,207.43 crore a year ago.
During 2024-25, the consolidated net profit also rose to ₹ 2,072 crore from ₹ 660 crore in the previous financial year. The total income in the fiscal increased to ₹ 10,993.13 crore from ₹ 6,567.51 crore in the year-ago period.
"After navigating a difficult decade, Suzlon has staged a robust recovery. Because of its huge order backlog and a robust pipeline supported by national RE targets, we maintain our positive outlook on the stock," the brokerage said.
We expect deliveries of 2.5GW in FY26 and 3.2GW in FY27. The brokerage values the stock at 40x PE on FY27e, given strong tailwinds, with a target price for Suzlon shares of ₹ 81, suggesting a nearly 23% upside from current levels.
The multibagger stock has risen 20% in a year, while it has surged 270% in two years, 984% in three years and a whopping 1324% in five years, helped by strong financials, debt restructuring and growing RE demand.
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