Suzlon Energy shares: Investec sets target price at Rs 70; here's why

Investec has initiated coverage on Suzlon Energy with a ‘Buy’ rating and a target price of Rs 70, suggesting nearly 28 per cent potential upside. The renewable energy solutions provider is seen well-positioned to capitalise on the resurgence in the wind energy sector, Investec reportedly said while suggesting a revenue growth of 55 per cent and profit after tax growth of 66 per cent, compounded annually, over FY24-27.

Investec, as per a report, noted that Suzlon Energy has evolved into a net cash entity with strong return on equity and return on capital employed and that it is aided by a rapidly expanding order book of 5.5 GW. Sulzon Energy, it said, has a robust pipeline of bids and fully optimised supply chain. Investec sees Suzlon Energy expanding its return on equity to 32 per cent FY27 from 28.5 per cent in FY24.

The Suzlon Energy management recently participated in the Nuvama India Conference 2025 where it suggested that wind turbine generator (WTG) contribution could be 20 per cent going forward against mid-to-high-teens earlier.

Suzlon Energy ramped up its execution to 447MW in Q3FY25, aided by capacity ramp-up to 4.5GW coupled with a sturdy Ebitda margin of 16.8 per cent. The management suggested that a robust order inflow of 800 MW bulked up the order book to a record 5.5GW, which is executable over 24 months, Nuvama said in a recent note.

Suzlon Energy continued to maintain a market share of 30 per cent-plus and is benefitting from a duopolistic market in EPC capabilities. Nuvama retained its ‘Buy’ on the stock with a target price of Rs 60, valuing Suzlon at 35 times FY27 EPS.

A total of 58 per cent of Suzlon’s customers are from commercial and industrial (C&I segment. A total of 21 per cent are PSU customers; 81 per cent of orders has non-EPC scope and that the orders are spread across seven States.

“With a strong order book, augmented manufacturing capacity, enhanced operational readiness – bolstered by new leadership at business groups and supply chain improvements and sufficient working capital, we believe that the company is well-positioned for considerable performance growth in the future,” JM Financial said recently.