Given the focus on renewable energy, Motilal Oswal has a ‘Buy’ recommendation on Suzlon Energy and set a target of Rs 74. This implies around 43% upside from current levels. The brokerage house highlighted that the company is entering a period of stronger deliveries, better cash flow, and more room in manufacturing.
Suzlon has been trying to move from a slow recovery to steady growth. The company had laid out how it plans to scale production, take on more projects, and prepare for export orders. Motilal Oswal says the path is not trouble-free but is clearer than it has been in years. The firm bases its view on order visibility, manufacturing gains, an improving balance sheet, and a larger role in EPC work.
Motilal Oswal on Suzlon: Deliveries start to climb
The firm begins with the numbers that show activity. Suzlon has an order book of about 6.2 gigawatts. Management also spoke of about 15 gigawatts in the wider pipeline. Motilal Oswal says this gives the company several years of work on paper, provided tenders move on time.
The company delivered less than one gigawatt last year. Motilal Oswal expects deliveries to move toward 3.9 gigawatts by fiscal 2028. Motilal Oswal adds that order conversion now matters as much as order intake. The company has to show that it can bring new orders to the ground without large hold-ups. Higher volume also allows factories to run more smoothly.
Motilal Oswal on Suzlon: Export plans and factory expansion
The note says Suzlon’s turbines are 90 to 95% ready for export markets. The remaining work involves country approvals and smaller technical steps. These steps often take one to one-and-a-half years. Motilal Oswal says that once Suzlon secures these approvals, it can sell in more markets and reduce its dependence on India alone.
The Pondicherry plant sits on a large plot, and only part of it is used today. Motilal Oswal notes that this allows Suzlon to add more shifts or more lines without long delays. The company is also setting up smart-blade plants in Gujarat and Karnataka and is working on a third site. These plants help shorten travel time for blades, which cut costs in a business where transport is expensive.
Motilal Oswal says these steps give Suzlon room to grow if orders rise.
Motilal Oswal on Suzlon: Cash improves after many tight years
The brokerage says Suzlon’s financial position is stronger than in earlier cycles. The firm expects cash on hand to rise over the next few years. Its model shows Suzlon moving into a net-cash position by fiscal 2028. Motilal Oswal points out that the company has already paid down much of its old debt, which once limited its choices.
Margins, according to the firm, can stay in the higher teens as long as deliveries rise and factories run near planned capacity. Motilal Oswal notes that working capital needs will grow with volume, but the company should be able to support this if collections remain steady.
Motilal Oswal on Suzlon: Land strategy gives EPC work a lift
Suzlon has been buying or securing land across several wind sites. Management said these parcels cover almost 23 gigawatts of potential projects. Motilal Oswal says work has started on land covering about 7 to 8 gigawatts.
The firm believes this is important because many wind projects get delayed during land work. When Suzlon controls the land process, projects start sooner, which customers want. Motilal Oswal says this could bring Suzlon’s EPC share from about 20% today to almost 50% by fiscal 2028. This gives Suzlon more control over project income, not just turbine sales.
Motilal Oswal on Suzlon: Domestic wind demand is entering a steady phase
The firm notes that India may install close to 10 gigawatts of new wind capacity each year by fiscal 2028. This is far more than the past few years. Motilal Oswal says only a small part of India’s potential wind sites have been used, which leaves a long runway for developers and suppliers.
While there have been talks of re-bids in some renewable contracts, Motilal Oswal says wind projects appear less affected than solar in the near term. Still, the firm reminds investors that India’s tender calendar can be uneven.
Motilal Oswal on Suzlon: Risks to watch out for
The firm lists a few points that could cause trouble. Working capital remains high. Receivable days and inventory days are above comfort levels. Motilal Oswal says these can rise further if the company takes on more work without faster collections. A rise from one gigawatt to nearly four gigawatts in deliveries needs tight planning. Motilal Oswal says even small bottlenecks can affect quarterly results. Tender flow is another risk. If auctions slow, Suzlon’s pipeline may not convert as expected.