Mumbai – Financial services firm Motilal Oswal has issued a "Buy" recommendation for Suzlon Energy Limited, projecting a significant upside of approximately 43% for the green energy stock. The brokerage firm set a target price of ₹74 per share, indicating strong confidence in the wind energy company's future performance. This optimistic outlook comes as India’s renewable energy sector continues to attract substantial investment and government support. ### ^{[1][2][3][4][5][6][7]}Suzlon Energy Poised for Strong Deliveries Motilal Oswal's positive assessment of Suzlon Energy is driven by several key factors, including a robust order book and the company's expanding manufacturing capabilities. Suzlon, a prominent player in the wind energy sector, designs, manufactures, installs, and maintains wind and solar energy solutions globally. The c^[8][3][9]ompany recently reported a strong wind order book of 6.2 gigawatts (GW) as of September 2025, providing clear earnings visibility for the coming years. Manag^[2][3][7]ement also indicated a wider project pipeline of about 15 GW. The ^[2][6]brokerage firm highlighted that Suzlon is entering a period of increased deliveries, improved cash flow, and greater manufacturing capacity. To me^[2]et rising demand, Suzlon is establishing three new smart blade factories. Two of these facilities will be in Gujarat and Karnataka, with a third location to be finalized soon. These new factories aim to boost production capacity, streamline delivery timelines, and enhance operational efficiency. The c^[2][3][4][5]ompany currently possesses an annual manufacturing capacity of 4.5 GW. ### ^[3][7]India's Wind Sector Growth and Export Ambitions India's wind energy sector is experiencing accelerated growth, with annual wind installations projected to exceed 10 GW by fiscal year 2028. The c^[2][3][4]ountry's total installed wind capacity stands at 52 GW, with 24.4 GW of pending orders. Suzlon holds a significant share of approximately 25% of these pending orders. Motil^[3]al Oswal noted that only a small portion of India's potential wind sites has been utilized, suggesting a long runway for growth for developers and suppliers like Suzlon. Beyo^[2]nd domestic expansion, Suzlon is actively pursuing international opportunities. Its existing turbine platforms are 90% to 95% ready for export markets, with the remaining steps involving country-specific approvals and minor technical adjustments, which typically take 12 to 18 months. Motil^[2][4]al Oswal believes that once these approvals are secured, exports will become a crucial growth driver for Suzlon, reducing its reliance on the domestic market. Compa^[2][4]ny management has expressed strong confidence in India's target of 10 GW annual wind installations by fiscal year 2028. This ^[1][4]growth is expected to be fueled by increasing demand from data centers, artificial intelligence workloads, and rising consumption in the commercial and industrial sectors. ### ^[4]Financial Turnaround and Strategic Advantages Motilal Oswal’s analysis also points to Suzlon’s improving financial health. The brokerage firm stated that Suzlon's financial position is stronger than in previous cycles, with expectations for cash on hand to increase over the next few years. Their mod^[2]el projects Suzlon moving into a net-cash position by fiscal year 2028. The compa^[2]ny has successfully paid down a significant portion of its older debt, which had previously constrained its strategic options. Furthermo^[2]re, Motilal Oswal anticipates that profit margins can remain in the higher teens as deliveries increase and factories operate near their planned capacity. A key st^[2]rategic advantage for Suzlon is its "EPC-first" approach, which involves securing land parcels across various wind-rich sites. The company has acquired or secured land covering almost 23 GW of potential projects, with work already initiated on sites totaling 7 to 8 GW. This proa^[2][4]ctive land acquisition strategy helps mitigate project delays often associated with land procurement. By controlling the land process, Suzlon can expedite project starts, a factor highly valued by customers. Motilal Oswal suggests this could significantly increase Suzlon's Engineering, Procurement, and Construction (EPC) share from around 20% currently to almost 50% by fiscal year 2028, giving the company more control over project income beyond just turbine sales. The compa^[2][4]ny's strong product performance, with over 95% of its turbines meeting their original lifecycle assumptions, further underpins its market position. ### Broa^[1][6][7]der Green Energy Momentum and Potential Risks The broader context of India's green energy push provides a favorable backdrop for Suzlon. The Indian government is actively promoting renewable energy sources like solar, wind, and hydropower. The Union^[8] Budget for 2025-26 allocated increased funds to support renewable energy projects, including investments in solar, wind, electric vehicle infrastructure, grid connectivity, and energy storage solutions. India has^[8] set an ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030, supported by policies like the Production Linked Incentive (PLI) scheme and the Approved List of Module Manufacturers (ALMM) to encourage domestic manufacturing. This supp^[9][10]ortive policy environment is expected to drive demand for clean energy and boost the stock prices of companies in the sector. Despite ^[8]the positive outlook, Motilal Oswal also highlighted potential risks. The firm noted that Suzlon's working capital remains high, with receivable and inventory days exceeding comfortable levels. These could increase further if the company takes on more projects without faster collections. Managing ^[2]the significant increase in deliveries from 1 GW to nearly 4 GW requires meticulous planning, and even minor bottlenecks could impact quarterly results. Additiona^[2]lly, the uneven nature of India's tender calendar poses a risk; if auctions slow down, Suzlon's project pipeline conversion might not meet expectations. In concl^[2]usion, Motilal Oswal maintains a bullish stance on Suzlon Energy, citing its robust order book, strategic expansion plans, improving financials, and the favorable tailwinds from India's accelerating green energy transition. The firm's target price of ₹74 suggests a substantial growth opportunity for investors in the coming period. META_TITLE^{[1][2][3][4][5][6][7]}: Motilal Oswal Recommends Suzlon Energy, Projects 43% Upside

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