Suzlon Energy shares rose 2.48% to ₹55.75 during intraday trading on Thursday, following positive analyst coverage. According to reports from Business Standard, the stock was trading at ₹55.40 at 10:31 AM, up 1.84% from its previous close. The rally came after brokerage JM Financial reiterated its 'Buy' rating on the stock, citing the company's comprehensive FY31 roadmap and strategic transformation plans. As per Univest analyst Ankit Jaiswal, the stock is among stocks to watch today following its June 3 announcement of a full-stack renewable energy diversification strategy.
As reported by JM Financial, Suzlon is targeting 10 GW of annual renewable energy sales by FY31, along with a 15 GW order book and assets under management (AUM) of 70 GW. The brokerage believes the company is recalibrating its strategy from product sales to project sales, eventually becoming a solutions provider. This evolution mirrors the path taken by industrial OEMs such as Goldwind and Vestas, progressing from equipment supplier to EPC and turnkey solutions provider. According to Univest, this strategic pivot expands Suzlon's addressable market from wind turbines to the entire renewable project development value chain.
According to the latest announcement, Suzlon is entering battery storage and launching RE DevCo, an integrated co-development platform, with ₹500 crore FY27 investment. As per Univest, this represents a significant strategic expansion beyond traditional wind turbine manufacturing into the complete renewable energy ecosystem. The company aims to increase its AUM more than four-fold to 70 GW by FY31 from the current 15.7 GW, creating a large annuity business across wind, solar, hybrid and multi-brand portfolios. The target of 10 GW RE sales by FY31 assumes 6 GW of wind capacity based on a 12-15 GW annual India market and 40% market share, along with 4 GW of solar and battery energy storage system capacity.
According to JM Financial, Suzlon plans to maintain around 40% market share in India, compared with the current 30-35% share. The company is targeting 3 GW of export orders during FY27-31, supported by high-capacity wind turbines including the S175 (5 MW) and S163 (6.3 MW). The brokerage highlighted that the combined worldwide market share of Suzlon and its subsidiaries stood at around 10% in 2009, making it the world's third-largest wind turbine generator player at the time. Univest notes that this diversification strategy positions Suzlon to capitalize on the growing renewable energy infrastructure market.
According to JM Financial, the brokerage has set a target price of ₹65 on the stock, based on 25x FY28E earnings per share (EPS). The target price implies an upside potential of 16.59% from the current market price. The brokerage noted that while it appreciates the move to address upcoming growth challenges, it would revise estimates once green shoots take root. Suzlon is also scaling up its EPC platform, which currently accounts for 28% of orders, and plans to establish a BESS manufacturing facility by 2027. Univest has flagged the stock as a key name to watch today, citing the strategic diversification into battery storage and integrated renewable energy development as a potential catalyst for continued growth.
