Suzlon Energy shares can rise another 10%: Axis Securities cites seven factors

Shares of Suzlon Energy are set to reach the Rs 72 mark in a period of 3 to 6 months, says Axis Securities. The brokerage believes that the company is in a position to benefit from the tailwinds in the Indian RE sector. It has strong revenue visibility with expected improvement in execution and a strong order book. 

It cited seven key factors behind its bullish stance on the multibagger stock. 

Strong Orderbook: As of May’25, the company had its highest-ever orderbook of 5.5 GW. 80% of the orderbook consists of C&I and PSU orders. It also has a strong ordering pipeline. The order book provides revenue visibility for the company for the next 2-3 years.

Improvement in execution: In FY25, the company’s deliveries were 1,550 MW, up 118% YoY. It has a strong execution capability along with a manufacturing capacity of 4.5 GW. The management expects its orderbook of 5+ GW to be executed in FY26 and FY27, implying a strong pickup in execution.

Strong Revenue Growth: The company’s revenue grew at a CAGR of 70% from FY20 to FY25 to Rs 10,851 Cr., led by improvement in execution. Its revenue is expected to grow at a ~40% CAGR over FY25-FY27 to Rs 21,275 Cr. Suzlon has guided for a 60% growth for FY26.

Capacity Expansion: The company revamped its Puducherry and Daman Nacelle facilities in Q3FY25, and now its total manufacturing capacity has increased from 3.2 GW to 4.5 GW. It plans to add two additional production lines at its Ratlam and Jaisalmer facilities to scale operations.

Strong O&M business: The company’s asset under management under its O&M business has increased from 2.5 GW in FY24 to 3.0 GW by FY25. The FY25 revenue from this segment was Rs 220 Cr, up 3% YoY. The segment has stable annuity-like cash flows with an annual escalation of 4-5%.

Positive Macro Outlook: The CEA forecasts India’s total Wind Energy Capacity to increase to 73 GW by FY27 and 122 GW by FY32. As of Jun’25, India’s wind capacity stood at 52 GW. The CEA targets require an annual wind capacity addition of 10 GW per annum, which is aligned with the MNRE targets of 10 GW of wind capacity tenders up to FY28.

ALMM Boost: MNRE has recently announced the implementation of ALMM for wind, making it mandatory to use major wind turbine components from the ‘Approved List of Models and Manufacturers (Wind Turbine Components). This implementation is positive for the local WTG manufacturers like Suzlon.

In the current session, Suzlon Energy stock was trading 1% lower at Rs 64.72 on BSE. Suzlon Energy’s market cap stood at Rs 88,678 crore. The green energy stock clocked a turnover of Rs 10.23 crore as 15.73 lakh shares changed hands on BSE today. 

The multibagger stock rose 251% in two years and gained 846% in three years.  Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Suzlon Energy is a provider of renewable energy solutions. The  company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.