Suzlon Energy shares have another 30% upside on attractive valuations, Motilal Oswal says

Shares of Suzlon Energy Ltd. were trading with gains of as much as 3% on Wednesday, May 14. The stock has gained in three out of the last five trading sessions, while shares of Suzlon are up for the third day running.

Brokerage firm Motilal Oswal has reiterated its 'Buy' rating on Suzlon Energy, with a price target of ₹75 per share. This implies an upside potential of 30% from the stock's last closing level on Tuesday.

The brokerage mentioned in its note that the recent draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) notification mandating local content in wind turbine manufacturing is a key medium- and long-term positive for Suzlon Energy.

According to its channel checks, power project developers will likely request the government for delayed implementation of the draft notification, though there is widespread consensus that the notification being formally adopted is highly likely.

Motilal sees two key implications from the recent draft RLMM notification:

1) Should the draft receive regulatory approval, it sees competitive intensity moderating in the medium term.

2) There is scope for further market share expansion for Suzlon given Indian OEMs account for barely 50-60% of new orders and the company's integrated domestic manufacturing capabilities across all key components.

According to Motilal, Suzlon is focused on raising its share of EPC contracts in the overall order book (20% now to 50% in the medium term), which will be key in providing greater visibility and control in terms of deliveries.

Suzlon Energy is currently valued at 24 times its estimated earnings for FY27, and the brokerage believes Suzlon's valuations are attractive following the recent correction.

Shares of Suzlon Energy are currently trading 2.13% higher on Wednesday at ₹58.85. The stock is up 8% over the last one month, but are down 10% so far in 2025.

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