Suzlon Energy shares at Rs 60? What stock market analysts say

Suzlon Energy Ltd shares have been in focus in Tuesday's trade amid big order win and the recent resignation of an Independent Director who raised concerns over corporate governance standards and transparency at the company. Analysts have largely maintained 'Buy' rating on the stock on recent strong order wins, noting the independent director himself was satisfied with financial and operational turnaround of the company, as suggested in his letter.

"It may be noted that the letter does not say that there is any financial or legal impropriety. The management is taking several steps to increase the transparency and improving the process of sharing information. Given this, the management is confident of addressing the specific issues of corporate governance and is looking to strengthen the corporate governance and disclosures. We have BUY rating on Suzlon with target price of Rs 60," ICICI Securities said in a note.

The broking firm said Suzlon Energy has been focused on debt reduction and efficient management of working capital in the last 15 months. It will look to improve corporate governance further as a continued process, it said adding that the company has also taken several steps to increase transparency in the recent past and is confident of addressing the specific issues of corporate governance.

"Outlook for wind industry is positive over the medium to long term, as 10GW of wind opportunity is expected to be floated over FY23-FY27E. Also, given the increasing complexity of RE power projects (from plain vanilla solar or wind to Hybrid, RTC and now FDRE), we believe wind will play a crucial role RE generation going ahead," ICICI Securities said.

JM Financial said the emphatic assurance of maintaining good corporate governance from the management during the post-resignation conference call complimented by the favourable macros, improving the pace of execution and still a healthy board composition, said JM Financial, as it maintained 'Buy' rating with a target price of Rs 54, based on based on a 30 times FY26E EPS.

Nuvama Institutional Equities said it finds no reason to stray away from its ‘Buy’ thesis on Suzlon Energy Ltd, backed by the wind sector’s structural upturn and financial turnaround of the company. It suggested a target price of Rs 53 on Suzlon Energy.