Suzlon Energy’s stock jumped 5% to ₹49.99 on Monday after Morgan Stanley gave it an ‘overweight’ rating and a target price of ₹58.5, suggesting a 17% rise.
This follows positive ratings from Nuvama and Anand Rathi, who set their targets at ₹53 and ₹58, respectively.
Morgan Stanley believes Suzlon is well-positioned to benefit from India’s energy transition. The company has strengthened by reducing debt and lowering fixed operating costs. By the end of March, Suzlon had a net cash balance of ₹1,100 crore.
The brokerage expects Suzlon’s earnings to grow at a compound annual growth rate (CAGR) of 57% from 2024 to 2027 and sees potential wind orders worth 32 GW, or $31 billion, over the next five years.
Suzlon’s stock is close to its 52-week high of ₹50.72 and has surged over 360% from its 52-week low of ₹10.86 in June 2023. It has gained over 333% in the past year and 31% in 2024 so far.
Nuvama noted Suzlon’s market leadership with a 30% share in the wind turbine market and highlighted the company’s strong growth prospects. Anand Rathi emphasized Suzlon’s significant market position and improved balance sheet, expecting government policies to support further earnings growth and positive re-ratings.
Despite past challenges with demand and debt, Suzlon’s turnaround has been notable, with expected deliveries of 1.5–2 GW for FY25–26. Limited competition and supportive policies are expected to drive future growth, though challenges like grid connectivity and land acquisition remain.
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