Latest news with #RevisedListofModelsandManufacturers
Mint
a day ago
- Business
- Mint
Suzlon Energy share price gets another bullish target as Motilal Oswal sees it rising to ₹82
Suzlon Energy continues to stay on analysts' radar as brokerage firm Motilal Oswal reiterated its positive outlook on multibagger renewable energy stock Suzlon Energy with a 'buy' rating with a target price of ₹ 82 apiece. This comes just days after Anand Rathi also projected a similar target of ₹ 81 apiece, as it reinitiated coverage with a 'buy' rating. The brokerage's positive outlook on the stock stems from the expected adoption of the RLMM local content draft notification by Q2FY26, strong order prospects, the gradual phase-out of the ISTS waiver over the next four years, and a rising share of EPC projects in the order book. According to brokerage discussions with players in the wind industry, the Revised List of Models and Manufacturers (RLMM) notification mandating local content for key wind turbine components is likely to be formally adopted in Q2FY26. It also added that contract awards for approximately 1.5 GW of NTPC orders are expected soon, where Suzlon is seen as a strong contender. The brokerage further highlighted that the share of EPC (engineering, procurement, and construction) projects in Suzlon's overall order book is likely to rise from around 20% currently to about 50% in the medium term, improving execution visibility. Moreover, with the tax rate set to kick in from the second half of FY27, the brokerage believes Suzlon is likely to resort to debt—primarily for working capital needs—thereby enhancing balance sheet efficiency and sustaining returns on equity (RoEs). The brokerage believes that the company stands to benefit from regulatory tailwinds mandating local content, a robust and growing order book that ensures strong revenue visibility, and operational improvements driven by proactive land acquisition and EPC expansion initiatives. Earlier, Anand Rathi noted that Suzlon's order book of 5.6 GW, which is 3.6 times its FY25 execution volumes, offers strong long-term growth assurance and ensures a steady project execution pipeline. After maintaining a steady upward trend between March and May, Suzlon Energy share price has come under pressure in recent months, amid broader weakness in the Indian stock market. Suzlon Energy stock declined 5.3% in June and has fallen another 3% so far in July. However, it remains a strong long-term performer, with Suzlon Energy shares rising 277% over the past two years and over 1,200% in the last five years.
Mint
a day ago
- Business
- Mint
Suzlon Energy share price gets another bullish target as Motilal Oswal sees it rising to ₹82
Suzlon Energy continues to stay on analysts' radar as brokerage firm Motilal Oswal reiterated its positive outlook on multibagger renewable energy stock Suzlon Energy with a 'buy' rating with a target price of ₹ 82 apiece. This comes just days after Anand Rathi also projected a similar target of ₹ 81 apiece, as it reinitiated coverage with a 'buy' rating. The brokerage's positive outlook on the stock stems from the expected adoption of the RLMM local content draft notification by Q2FY26, strong order prospects, the gradual phase-out of the ISTS waiver over the next four years, and a rising share of EPC projects in the order book. According to brokerage discussions with players in the wind industry, the Revised List of Models and Manufacturers (RLMM) notification mandating local content for key wind turbine components is likely to be formally adopted in Q2FY26. It also added that contract awards for approximately 1.5 GW of NTPC orders are expected soon, where Suzlon is seen as a strong contender. The brokerage further highlighted that the share of EPC (engineering, procurement, and construction) projects in Suzlon's overall order book is likely to rise from around 20% currently to about 50% in the medium term, improving execution visibility. Moreover, with the tax rate set to kick in from the second half of FY27, the brokerage believes Suzlon is likely to resort to debt—primarily for working capital needs—thereby enhancing balance sheet efficiency and sustaining returns on equity (RoEs). The brokerage believes that the company stands to benefit from regulatory tailwinds mandating local content, a robust and growing order book that ensures strong revenue visibility, and operational improvements driven by proactive land acquisition and EPC expansion initiatives. Earlier, Anand Rathi noted that Suzlon's order book of 5.6 GW, which is 3.6 times its FY25 execution volumes, offers strong long-term growth assurance and ensures a steady project execution pipeline. After maintaining a steady upward trend between March and May, Suzlon Energy share price has come under pressure in recent months, amid broader weakness in the Indian stock market. Suzlon Energy stock declined 5.3% in June and has fallen another 3% so far in July. However, it remains a strong long-term performer, with Suzlon Energy shares rising 277% over the past two years and over 1,200% in the last five years. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Economic Times
a day ago
- Business
- Economic Times
Motilal Oswal sets the highest-ever target price for Suzlon Energy shares at Rs 82; here's why
Motilal Oswal has issued a 'Buy' call on Suzlon Energy with its highest-ever target price of Rs 82, implying a 24% upside. The brokerage cites benefits from upcoming local content mandates, a strong order book, and improved execution through land acquisition and EPC expansion. The RLMM policy, mandating local sourcing, is expected to be formally adopted in Q2FY26. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Believing that Suzlon Energy Ltd (SUEL) stands to benefit from local content mandates, a strong order book ensuring revenue visibility, and improved execution via land acquisition and EPC expansion, domestic brokerage firm Motilal Oswal has assigned its highest-ever target price for the stock at Rs Oswal has given a 'Buy' rating and sees an upside potential of 24% from Thursday's closing price on the BSE.'SUEL stands to benefit from regulatory tailwinds mandating local content, a robust order book providing strong revenue visibility, and execution improvements through proactive land acquisition and EPC expansion initiatives,' the brokerage said in a Revised List of Models and Manufacturers (RLMM) notification mandating local content in wind turbines is expected to be formally adopted in Q2FY26. While developers have sought up to a year for implementation, policy intent remains Oswal believes this could be a tailwind for Suzlon the company's order outlook remains strong, with potential NTPC awards of 1.5 GW expected soon. FY26 total orders are estimated at 4 GW, which could raise the order book to 6.5 GW — surpassing the previous peak of 5.6 the brokerage flagged execution as a continuing challenge in the wind sector, with FY25 capacity additions at 4.2 GW, still below the 5.5 GW peak in FY17. That said, larger turbine sizes and the expansion of projects across more states could help exceed past are playing a more active EPC role as their financials improve, with early land acquisition becoming more common. The shift to a land lease model and the phasing out of ISTS waivers should also ease execution bottlenecks. For Suzlon, the EPC share in the order book is expected to rise from 20% to 50% in the medium term, enhancing execution read: HUL shares rally 4% as Priya Nair gets CEO role: Why D-St is betting big on India's new consumer queen Suzlon's cash conversion cycle (CCC) is also projected to improve by 30–35 days over the next few years, aiding free cash flow generation. This improvement will be driven by slower growth, better inventory control from rising EPC share, and stronger supplier bargaining 2HFY27 onwards, the company may also use more debt to meet working capital needs, improving balance sheet efficiency and sustaining return on equity (RoE).Given this outlook, Motilal Oswal has applied a target P/E of 35x to FY27E EPS — a slight premium to its historical two-year forward P/E average of 27x — as execution and earnings momentum are only beginning to pick up for Suzlon of noon today, shares of Suzlon Energy were trading 0.7% lower at Rs 65.51 on BSE.
Time of India
a day ago
- Business
- Time of India
Motilal Oswal sets the highest-ever target price for Suzlon Energy shares at Rs 82; here's why
Believing that Suzlon Energy Ltd (SUEL) stands to benefit from local content mandates, a strong order book ensuring revenue visibility, and improved execution via land acquisition and EPC expansion, domestic brokerage firm Motilal Oswal has assigned its highest-ever target price for the stock at Rs 82. Motilal Oswal has given a 'Buy' rating and sees an upside potential of 24% from Thursday's closing price on the BSE. 'SUEL stands to benefit from regulatory tailwinds mandating local content, a robust order book providing strong revenue visibility, and execution improvements through proactive land acquisition and EPC expansion initiatives,' the brokerage said in a note. The Revised List of Models and Manufacturers (RLMM) notification mandating local content in wind turbines is expected to be formally adopted in Q2FY26. While developers have sought up to a year for implementation, policy intent remains firm. Motilal Oswal believes this could be a tailwind for Suzlon Energy. Additionally, the company's order outlook remains strong, with potential NTPC awards of 1.5 GW expected soon. FY26 total orders are estimated at 4 GW, which could raise the order book to 6.5 GW — surpassing the previous peak of 5.6 GW. However, the brokerage flagged execution as a continuing challenge in the wind sector, with FY25 capacity additions at 4.2 GW, still below the 5.5 GW peak in FY17. That said, larger turbine sizes and the expansion of projects across more states could help exceed past records. OEMs are playing a more active EPC role as their financials improve, with early land acquisition becoming more common. The shift to a land lease model and the phasing out of ISTS waivers should also ease execution bottlenecks. For Suzlon, the EPC share in the order book is expected to rise from 20% to 50% in the medium term, enhancing execution visibility. Also read: HUL shares rally 4% as Priya Nair gets CEO role: Why D-St is betting big on India's new consumer queen Suzlon's cash conversion cycle (CCC) is also projected to improve by 30–35 days over the next few years, aiding free cash flow generation. This improvement will be driven by slower growth, better inventory control from rising EPC share, and stronger supplier bargaining power. From 2HFY27 onwards, the company may also use more debt to meet working capital needs, improving balance sheet efficiency and sustaining return on equity (RoE). Given this outlook, Motilal Oswal has applied a target P/E of 35x to FY27E EPS — a slight premium to its historical two-year forward P/E average of 27x — as execution and earnings momentum are only beginning to pick up for Suzlon Energy. As of noon today, shares of Suzlon Energy were trading 0.7% lower at Rs 65.51 on BSE.
Mint
03-07-2025
- Business
- Mint
Multibagger Inox Wind: Motilal Oswal bets on renewable energy, sees multi-year growth potential; sets target at ₹210
Multibagger renewable energy stock has recieved a bullish note from domestic brokerage house Motilal Oswal Financial Services. The brokerage initiated coverage on the stock with a 'Buy' rating and set a target price of ₹ 210 per share, implying a potential upside of almost 19 percent from its previous close of ₹ 176.85. Motilal Oswal said, 'We initiate coverage on Inox Wind Limited (IWL) with a BUY rating and a target price of ₹ 210 per share.' The brokerage noted that Inox Wind is a leading vertically integrated player in India's wind energy sector, offering end-to-end solutions, including project conception, commissioning, and long-term operations and maintenance (O&M) services. As of FY25-end, Inox Wind had an impressive order book of 3.2 GW, providing strong revenue visibility for the next two years. Motilal Oswal pointed out that the company operates with an annual manufacturing capacity of 2.5 GW across four facilities and produces both 2 MW and 3 MW wind turbine generators. 'Inox Wind's business is further supported by its subsidiary Inox Green Energy Services (IGESL), which manages a 5.1 GW O&M portfolio,' the brokerage said. Another subsidiary, Inox Renewable Solutions (IRSL), is expanding into solar, hybrid EPC, and crane services, offering synergies to the core wind operations. Highlighting broader sector trends, Motilal Oswal noted that wind energy is expected to account for around 20 percent of India's renewable energy mix by 2030, up from current levels. In comparison, the wind share in the renewable energy mix is already 39 percent in the US, 33 percent in China, and 42 percent in the UK. 'Hybrid and firm-dispatchable renewable energy projects are gaining traction, and wind remains an integral component, despite theoretical enthusiasm for standalone solar-plus-storage solutions,' the brokerage added. On the policy front, Motilal Oswal flagged a key regulatory development: the draft amendment to the Revised List of Models and Manufacturers (RLMM) by the Ministry of New and Renewable Energy (MNRE). If finalised, the stricter local sourcing norms could narrow the cost advantage held by Chinese suppliers. 'The proposed RLMM changes could support domestic OEMs like SUEL and IWL by addressing the competitive pressure from Chinese imports,' Motilal Oswal noted. Looking ahead, the brokerage expects Inox Wind to deliver a 38 percent EBITDA CAGR over FY25–28, driven by an increase in wind turbine generator (WTG) execution—from 705 MW in FY25 to 1.8 GW in FY28—and a tripling of the O&M portfolio to 9.6 GW. O&M revenue, EBITDA, and adjusted PAT are forecast to grow at a CAGR of 27 percent, 54 percent, and 65 percent, respectively. The recent merger of Inox Wind with its holding company Inox Wind Energy, approved by the NCLT on June 10, 2025, is expected to streamline the corporate structure and reduce liabilities by ₹ 2,000 crore. Additionally, IGESL is in the process of demerging its power evacuation division into IRSL, which is estimated to save ₹ 48 crore annually in depreciation. Motilal Oswal has valued Inox Wind at 25x FY27 estimated earnings per share, arriving at a target price of ₹ 210. 'This is at a 29 percent discount to the valuation of Suzlon Energy, reflecting both opportunity and risk,' the brokerage said. Inox Wind has delivered impressive long-term returns. The renewable energy stock is up 23 percent over the past year. It saw a 10 percent decline in June after a strong three-month rally—rising 15.5 percent in May, 3.7 percent in April, and 8.5 percent in March. Previously, the stock had declined for five straight months from October 2024 to February 2025. In the long term, Inox Wind has turned into a multibagger, surging 1675 percent over the past five years from ₹ 9.96 in 2020. Over the past three years, it has rallied 794 percent.
