Suzlon Energy underperforms stock market in 2025: B&K Securities shares company prospects

Domestic brokerage firm B&K Securities has shared its views on Suzlon Energy. However, it has not rated the stock but believes that Suzlon is well-positioned for a turnaround, backed by strong execution, regulatory support, and wind energy’s grid reliability amid India’s energy demand, which is set to grow 7 per cent CAGR till FY30, reaching 708 GW by 2047.

A significant boost is expected to be given to the domestic supply chain through the RLMM draft notification mandating local manufacturing of blades, towers, gearboxes and generators for wind energy, noted B&K Securities. "The RLMM draft notification incorporates mandates around cyber security and local R&D, enabling turbine designs tailored to Indian climatic conditions," it said.

The OEM manufacturing capacity in India has been estimated at 20 GW, with gearbox capacity at 29 GW, blade manufacturing at 28 GW and generator manufacturing at around 14.5 GW. India’s energy demand is projected to grow at a CAGR of 7 per cent from FY24 to FY30, surpassing the historical average of 5 per cent. Electricity demand is expected to reach 708 GW by 2047.

"Suzlon Energy stands at the cusp of a structural turnaround after nearly a decade of financial distress and industry headwinds. The company is primed for sustainable growth. Continued execution strength in its core WTG segment, along with resilient OMS operations and expanding foundry capabilities, positions Suzlon well to achieve the expected 60 per cent YoY growth in FY26," said B&K.

"While solar tariffs remain competitive, wind energy’s grid stability during peak non-solar hours ensures a complementary demand landscape. Regulatory tailwinds such as the RLMM mandate on localisation and R&D further bolster Suzlon’s prospects. The stock is trading at 43.2x its FY25 earnings. We do not have a rating on the stock," it added.

Echoing the similar view, SBI Securities said that power capacity is expected to increase by 4 times to 2,100 GW by 2047. The wind capacity addition is expected to be at 400 GW thus benefitting Suzlon. "The capacity additions in power will boost the demand for equipment like Transformers, Turbines, Motors, Generators, switches," it said.

Shares of Suzlon Energy remained range-bound during the trading session on Wednesday as the stock managed to hold above Rs 66 mark. The company commands a total market capitalization of more than 90,000 crore. The stock is still down 23 per cent from its 52-week high at Rs 86.04 hit in September 2024.

Recently, Anand Rathi Shares & Stock Brokers has re-initiated its coverage on Suzlon Energy with a buy rating. Backed by financial restructuring, resulting in a net cash position of Rs 830 crore, market leader Suzlon has strongly turned around. Its record-high 5.6GW order book—3.6 times FY25 execution— ensures robust assurance, it said.

"With India targeting 10GW annual wind additions through 2030 and supportive policies, the sector’s tailwinds are strong. Suzlon Energy is set to capitalize on this, with expected deliveries of 2.5GW in FY26 and 3.2GW in FY27. We re-initiate coverage on the stock with a 'buy' recommendation, valuing it at40 times FY27e PE and a target price of Rs 81," Anand Rathi added.

Among other brokerage firms, Motilal Oswal Financial Services has also maintained its 'buy' tag on the stock with a target price of Rs 85. JM Financial also has a 'buy' rating on Suzlon with a target price of Rs 81, while Geojit BNP Paribas has an 'accumulate' rating on it with a target price of Rs 77.