Target: ₹71
CMP: ₹57.78
With its highest-ever, and growing, order book of 5.9GW, Suzlon Energy remains upbeat about revival of the industry and resolution of execution challenges in the next 2-3 quarters. The company shared that the feedback on performance of the 3MW wind turbine generator (WTG) has been very encouraging.
During our visit to the company’s nacelle and hub assembly plant at Daman, we saw initiatives to enhance capabilities to handle more volume and higher-rating WTGs. The area of the shop floor is under expansion by converting the existing warehouse in to the new hub assembly shop. The capacities of Electric Overhead Traveling (EOT) cranes in both shops and loading area have been increased. With this, the plant can manufacture 4 nacelles/day (+1 no.).
The manufacturing capacity of the company will increase from 3.15GW to 4.5GW, taking together capacities at both Daman and Pondicherry plants. We maintain our Buy rating on the stock with a TP of ₹71 (from ₹80 earlier), moderating P/E multiple from 40xDec’26 to 35xMar’27 given execution challenges constraining growth beyond FY27 and roll forwarding our EPS from Dec’26 to Mar’27.