Suzlon Energy shares have extended their rally for the fourth consecutive session, rising from ₹36.43 to ₹40.70 per share in the latest trading session. The stock opened flat at ₹40.19 per share on Wednesday and touched an intraday high of ₹40.73, clocking an intraday gain of 1.50%. According to latest reports, the shares ended at ₹40.80 per share on Wednesday, marking their biggest gain in five months as the stock climbed as much as ₹39.44 per share. Despite the recent volatility, the stock remains a beaten-down investment with 25% negative return in one year, 22% slide in YTD, 17% dip in six months and 5% correction in one month.
Motilal Oswal has retained its 'Buy' rating on Suzlon Energy with a target price of ₹65, based on 30 times estimated FY28 EPS. The brokerage sees potential upside of 73% from current levels, on the back of an attractive valuation, a strong order book and improving earnings visibility. According to Motilal Oswal, the stock price has corrected 31% over the past three months and is currently trading at 17.5 times its estimated FY28 earnings per share (EPS), representing a 20% discount to the stock's one-year forward average price-to-earnings multiple minus one standard deviation of 22 times.
Suzlon Energy's order book stood at 5.9 GW at the end of the first quarter of FY27, with approximately 1.3 GW of order inflows recorded in FY27 year-to-date. According to Motilal Oswal, the existing order book provides 100% visibility on its estimated deliveries through the third quarter of FY28, strengthening the company's earnings outlook. The brokerage expects deliveries to rise to an estimated 2.1 GW in the second half of FY27, compared with 1.2 GW in the first half. Motilal Oswal forecasts Suzlon Energy's deliveries of 3.3 GW in FY27 and 3.8 GW in FY28, with the order pipeline giving visibility through the third quarter of FY28.
Market experts highlight that Suzlon Energy shares witnessed a first round of re-rating when it came out of the group of loss-making companies and became a profitable company. As per SMC Global Securities, the market is now waiting for the next round of re-rating as margins improve once it becomes a profit-making company. Seema Srivastava from SMC Global Securities emphasized that Suzlon Energy's Q2 results 2026 will be crucial as improved margins could be a big trigger for Dalal Street bulls. The company's transformation from loss-making to profitability has been a key catalyst, with experts noting that the weighted average of the stock price post-re-rating is around ₹38 to ₹40, suggesting limited downside potential.
Mahesh M Ojha from KC Securities identified a strong base at ₹40 to ₹40.50 for Suzlon shares, recommending existing shareholders to hold the scrip maintaining a stop-loss at ₹40 for an upside target of ₹46. Fresh investors can also buy and hold the stock for the same upside target, maintaining the same stop-loss. The expert noted that Suzlon shares are facing resistance at ₹42, and breaking above this resistance on a closing basis could drive the stock to the ₹46 mark soon. According to experts, $100 per barrel has become the new normal for crude oil prices in the short to medium term, which is expected to fuel demand for alternative energy products and benefit Suzlon Energy's balance sheet.
