Target: ₹30

CMP: ₹23.49

Suzlon Energy Ltd (Suzlon) with leading market share (33 per cent), higher depth of manufacturing (4.5GW), most credible O&M services (35 per cent+ EBITDA) and technology superiority (3MW sets under testing) is best placed to grow its order book (1.5GW/2GW as of Jun’23/Mar’26) and enhance project execution (800MW/1500MW in FY24/FY26) gaining from the industry tailwinds.

With a visible bidding trajectory from MNRE, emergence of RTC - C&I segment, upcoming Repowering policy and multiple policy initiatives, the wind energy sector is poised for a decadal growth.

As the company is on its way to become net-debt free, we expect the Suzlon to deliver revenue and EBITDA CAGR of 31 per cent and 38 per cent respectively over FY23-26. With industry tailwinds in place, a deleveraged balance sheet and a robust order book, we expect a strong pick-up in the company’s performance going forward.

We expect Suzlon’s EPS to reach ₹1.4 in FY26. We initiate coverage on the stock with a Buy rating and a Sep’24 TP of ₹30/share (based on a 25x Sept’25E EPS).