Suzlon Energy has set a target price of ₹71, with the current market price standing at ₹57.78. The company continues to be optimistic about the industry’s resurgence and the resolution of execution challenges in the coming 2-3 quarters, fueled by its record order book of 5.9GW. Feedback on the performance of the 3MW wind turbine generator (WTG) has been positive, indicating promising prospects.
A recent visit to Suzlon Energy’s nacelle and hub assembly plant at Daman showcased efforts to enhance capabilities to accommodate higher volume and ratings of WTGs. Expansion works are underway, converting the existing warehouse into a new hub assembly shop, and increasing the capacities of Electric Overhead Traveling (EOT) cranes in both shops and loading areas. These initiatives will enable the plant to manufacture 4 nacelles per day, up from the current capacity of 3.15GW.
The company’s manufacturing capacity is also set to increase from 3.15GW to 4.5GW, inclusive of capacities at both Daman and Pondicherry plants. Despite some execution challenges hindering growth beyond FY27, we maintain a Buy rating on Suzlon Energy stock with a target price of ₹71 (revised from ₹80 earlier). The price-to-earnings (P/E) multiple has been adjusted from 40xDec’26 to 35xMar’27, reflecting the company’s growth trajectory. The earnings per share (EPS) has been rolled forward from Dec’26 to Mar’27 to align with the updated target price and market conditions.
Published on March 19, 2025.
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