The brokerage firm Axis Securities has put wind energy player Suzlon Energy on its watchlist with a “Buy” call. The brokerage has given a target price of Rs 72 to the stock. This implies a 10% upside from its current market price of Rs 65.
The brokerage house believes that Suzlon’s expanding order book, execution capacity, and the government’s renewed focus on renewable energy make it a stock to track closely.
Let’s take a look at why Suzlon is back in focus-
Axis Securities on Suzlon: Record order book
As per the brokerage report, Suzlon currently has its highest-ever order book of 5.5 GW.
One of the most interesting things to note is that around 80% of this is backed by PSU and commercial & industrial (C&I) clients, offering reliable revenue streams for the next 2-3 years. “The order book provides revenue visibility for the company for the next 2-3 years,” the report noted.
Axis Securities on Suzlon: Execution capacity is picking up pace
Apart from bagging orders, the company is also delivering too. Deliveries in FY25 rose 118% year-on-year to 1,550 MW. Backed by a manufacturing capacity of 4.5 GW, Suzlon is expected to execute the current pipeline over FY26–FY27
Axis Securities on Suzlon: Revenue growth
The brokerage house further noted down that Suzlon’s revenue grew at a CAGR of 70% from FY20 to FY25, reaching Rs 10,851 crore.
Furthermore, the company is expected to post a revenue CAGR of nearly 40% over the next two years, with FY26 alone expected to grow 60%. Capacity expansion at facilities in Puducherry and Daman and upcoming lines in Ratlam and Jaisalmer are likely to drive this growth.
Axis Securities on Suzlon: Regulatory push
The report added another layer of optimism and that is the policy support. India’s renewable energy goals aim to increase wind capacity to 73 GW by FY27 and 122 GW by FY32.
Furthermore, the brokerage firm noted that a recent move by MNRE to mandate ALMM compliance for wind turbines will favour local manufacturers like Suzlon, as major components will have to be sourced from approved players.
Suzlon’s share price
Suzlon share performance has been mixed lately. Over the past 5 days, the share price of the company rose nearly 8%. But over the last month, it has dipped 1%.
On a six-month basis, it is up 18%, though it is still down 2% year-on-year. The year-to-date move is marginally negative at 0.6%.
The company’s market cap currently stands at Rs 88,950 crore, with a 52-week high of Rs 86.04 and a low of Rs 46.15.