Suzlon Energy has received a strong vote of confidence from Motilal Oswal, with the brokerage maintaining its buy recommendation and setting a price target of ₹74, representing a potential upside of 54% from current levels as of January 20.

Brokerage Outlook and Market Concerns

Motilal Oswal's analysis comes at a time when Suzlon Energy shares have faced pressure due to multiple market concerns. The brokerage identified key investor worries including cannibalization of wind's share in tenders from the solar segment, slow pace of wind installations, and rising competitive intensity in the wind sector.

Despite these headwinds, Motilal Oswal believes the concerns are already reflected in the current stock price, creating a favorable risk-reward scenario for investors.

Growth Drivers and Market Opportunity

The brokerage highlighted significant growth potential beyond India's targeted 100 GW wind capacity by FY2030. Data centers, Commercial & Industrial (C&I) consumers, and Public Sector Undertakings (PSUs) are expected to drive incremental wind demand of 20-24 GW by 2030.

Strategic Positioning and Competitive Advantages

Suzlon Energy's strategy to scale up its Engineering, Procurement, and Construction (EPC) share to 50% of its order book provides a meaningful competitive advantage. The company's superior execution track record compared to domestic peers, coupled with limited participation of Chinese Original Equipment Manufacturers (OEMs) in the EPC space, positions it favorably for complex and large-scale projects.

Regarding the current project pipeline, out of 40 GW projects with pending Power Purchase Agreements (PPAs), industry channel checks suggest nearly 17 GW are pure solar projects, with wind accounting for a negligible share.

Export Potential and Future Capacity

Management sees exports emerging as an additional growth driver, with orders expected in early FY2027 and supplies starting from FY2028. Suzlon Group's Executive Vice Chairman Girish Tanti, speaking at the World Economic Forum in Davos, outlined ambitious capacity expansion plans.

Analyst Consensus and Stock Performance

Suzlon Energy enjoys strong analyst support, with all nine covering analysts maintaining buy ratings, making it a consensus buy. However, the stock has faced recent volatility, ending 1% lower at ₹47.94 on Monday and trading 37% below its 52-week high of ₹74.47, which coincidentally matches Motilal Oswal's price target.

The brokerage's bullish stance reflects confidence in the company's strategic positioning and long-term growth prospects in India's expanding renewable energy sector, despite near-term market challenges.

Source: https://www.cnbctv18.com/market/suzlon-energy-share-price-bull-sees-54-percent-upside-target-buy-sell-concerns-orders-19824196.htm

Suzlon Energy , a leading renewable energy solutions provider, has been experiencing significant downward pressure on its stock price, raising concerns among investors about the company's near-term prospects. The renewable energy sector player has seen its shares decline substantially over recent months, prompting market participants to reassess their investment strategies.

Stock Performance Analysis

The company's stock performance has been notably weak across multiple timeframes, reflecting broader market sentiment and company-specific challenges:

Current Market Challenges

Suzlon Energy is currently grappling with mounting losses, which have contributed to the negative investor sentiment surrounding the stock. The company's financial performance has been under pressure, with losses accumulating over the recent period. Additionally, technical analysis of the stock charts reveals weakness in the underlying price action, suggesting continued bearish momentum in the near term.

Technical Outlook

The technical charts for Suzlon Energy are displaying signs of weakness, indicating that the stock may continue to face headwinds in the immediate future. The combination of fundamental challenges and technical weakness has created a challenging environment for the stock, with investors closely monitoring key support and resistance levels.

Investment Considerations

Given the current market conditions and the company's performance metrics, investors are faced with critical decisions regarding their positions in Suzlon Energy. The renewable energy solutions provider's stock decline of 27% over six months represents a significant erosion of shareholder value, while the year-over-year decline of 17% indicates sustained pressure on the stock price. Market participants are evaluating whether the current price levels present an opportunity for long-term investors or if further weakness may be expected.