Suzlon Energy Ltd saw its shares hitting the 5 per cent upper circuit limit in Thursday's trade, the second in a row, as the December results exceeded analyst estimates. Buy Suzlon Energy shares, said JM Financial while suggesting a target price of Rs 80 on the stock. A day ago, Nuvama had suggested a price target of Rs 60 on the renewable energy solutions provider.
On Thursday, the stock was trading at Rs 55.39 on BSE, up 5 per cent. Despite the recent fall, the multibagger stock is still 518.19 per cent in the past two years. The two fresh targets suggest up to 44 per cent potential upside over the prevailing stock price.
"With a strong order book, augmented manufacturing capacity, enhanced operational readiness - bolstered by new leadership at business groups and supply chain improvements and sufficient working capital, we believe that the company is well-positioned for considerable performance growth in the future," JM Financial said.
The brokerge said the pace of capacity addition at country level will continue to be a critical metric for monitoring moving forward. It said several large orders from NTPC Ltd, Torrent Power Ltd and Jindal Renewables Ltd have secured land, thereby providing improved visibility for execution.
Suzlon has recorded highest-ever order book of 5,521MW till January 2025, with a diversified mix with 92 per cent 3x MW series. A total of 58 per cent of its customers are from commercial and industrial (C&I segment. A total of 21 per cent are PSU customers; 81 per cent of orders has non-EPC scope and that the orders are spread across 7 States.
"Suzlon Energy has signed India’s largest wind energy order of 1,166MW from NTPC Green as it becomes eligible for bidding PSU tenders and has also made a bid for another 900 MW+ tender from NTPC Green, results for which are expected in next 30-45 days," JM Financial said.
Earlier, Nuvama Institutional Equities also suggested a Buy' on Suzlon Energy, as it upgraded the stock from 'Hold' on valuation comfort, following the recent stock correction.
Nuvama called the Q3 execution of 447MW as robust, given it was expecting Suzlon Energy's execution at 360MW. Suzlon Energy's operating margin improved to 16.8 per cent in Q3 against Nuvama's estimate of 14.9 per cent, due to higher wind turbine generator (WTG) mix-led operating leverage, resulting in 11 per cent beat to consensus forecast.
"We remain long-term positive on Suzlon as we tweak FY25–27 estimates to factor in improved execution in FY25E (1.5GW versus 1.44GW), Renom acquisition and others charges, yielding a revised target of Rs 60 at 35 times FY27E (WTG + F&F EPS) plus DCF of O&M. Upgrade Suzlon to ‘BUY’ (from ‘HOLD’) on valuation comfort and price correction," Nuvama said.