Target: ₹67
CMP: ₹47.04
We initiate coverage on Suzlon Energy Ltd (SUEL IN) with a Buy rating and a target price of ₹67, based on 30x H1-FY28E EPS. SUEL is a leading provider of wind energy solutions, with its integrated capabilities spread across manufacturing, engineering, procurement, and construction (EPC) and operations and maintenance (O&M).
The company has a total manufacturing capacity of 4.5GW and an installed base of over 20GW. The company enjoys about 35 per cent market share in India’s wind turbine installations and is strategically placed to benefit from the country’s targeted wind capacity addition. India’s RE procurement landscape is evolving from pure capacity addition to higher availability, which fundamentally favours wind power. When paired with battery energy storage systems (BESS), wind lowers the overall storage requirement per unit of firm renewable energy (RE), improving project economics under FDRE and hybrid tenders.
We expect the company to execute 2,480MW/3,224MW in FY26/FY27, respectively, likely translating into revenue/EBITDA/PAT CAGR of 30/39/18 per cent over FY25-FY28. Execution delays, grid evacuation constraints and logistical bottlenecks are key risks that could impact project timelines.
We apply a conservative mid-cycle valuation multiple of 30x, at a discount to SUEL’s current trading multiple and peer valuations (31x FY28 P/E) that explicitly factors in execution risks while recognising improving earnings quality, cash conversion, and balance sheet strength.