Suzlon Power shares are down 29% from peak however Nuvama simply upgraded the inventory to purchase. Here is why
Nuvama lowered its goal worth to Rs 60 from Rs 66, however mentioned the latest correction has created a chance. The brokerage mentioned that the revised a number of displays a “near-term tendering slowdown, a danger to FY28E development.”
Technically, Suzlon continues to face headwinds. The inventory is buying and selling under seven of its eight key easy transferring averages — the 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day — and is above solely the 5-day SMA. The RSI sits at 33.5, close to oversold territory, whereas the MACD at -1.3 stays under each the sign and centre traces.
Suzlon Power’s sector visibility enhancing
Nuvama’s improve adopted its go to to Suzlon’s ‘FY26 Manufacturing Day’ on the firm’s Puducherry facility. It highlighted expectations that India’s wind additions will rise from 6GW in FY26 to 8-9GW in FY27 and round 10GW by FY28.
Suzlon is focusing on 2GW of order influx in H2FY26 and expects full utilisation of its expanded 4.5GW annual capability by FY29–30, supported by export alternatives and rising data-centre demand. Administration highlighted that “India’s wind export potential is estimated at 10% of worldwide wind demand by FY30 (scalable to twenty%+).”
CEO J.P. Chalasani underscored the relative economics of wind versus photo voltaic, saying:
“Wind is cheaper than photo voltaic, even at INR 3.6/unit versus INR 2.5–2.6/unit.” He added that whereas photo voltaic requires storage to align with India’s demand peaks, “standalone wind within the present market can nonetheless survive.”
Why Nuvama isn’t fearful about tendering delays
The brokerage mentioned near-term central tendering delays mustn’t derail the broader cycle, noting: “H2FY26E/FY27E tendering slowdown to be offset by 17.6GW pending orders, C&I and state bids.”
It pointed to coverage steps such because the third GNA modification, which separates photo voltaic and non-solar hours and is meant to ease grid congestion and cut back renewable curtailment.
Dalal Avenue’s bullishness is rising regardless of Suzlon’s slide
Suzlon shares stay firmly under their peak, down 29% from the Could excessive of Rs 74.30, however analysts throughout the Avenue are turning more and more constructive. Even after climbing 14% from the 52-week low of Rs 46.15, the inventory nonetheless has floor to get better, and brokerages imagine it might probably shut that hole and transfer past it.
On Tuesday, the shares touched Rs 52.77 intraday at the same time as broader markets traded subdued.
Right here’s how different brokerages are making the bullish case, some forecasting upside of as a lot as 55%.
Anand Rathi: Rs 82 goal, probably the most bullish
Anand Rathi has the very best upside forecast, assigning a goal worth of Rs 82, implying a 55% climb from present ranges. It cited improved scale leverage at Suzlon’s Puducherry plant, at the moment at 30% utilisation with potential to scale from three to eight nacelles per day with minimal capex, alongside three upcoming AI-enabled blade services that would enhance execution and logistics.
It highlighted the energy of Suzlon’s order combine, noting that 51% comes from C&I and retail prospects.
ICICI Securities: Rs 76 goal, backed by execution energy
ICICI Securities reiterated its ‘purchase’ score with a goal of Rs 76, pointing to robust execution in H1FY26 and administration’s efforts to deal with issues round renewable capability addition.
The brokerage highlighted Suzlon’s 6.2GW order e-book, 4 occasions its FY25 deliveries, and mentioned H1FY26 deliveries doubled year-on-year to round 1GW. The brokerage expects the corporate to achieve 2.5GW of deliveries in FY26, aided by its readiness to faucet export markets and deliberate capex of Rs 500–550 crore yearly for 3 years.
Motilal Oswal: Rs 74 goal, with exports as a development driver
Motilal Oswal maintained its ‘purchase’ name with a goal of Rs 74, flagging exports as a serious rising driver. It famous that Suzlon’s platforms are near being export-ready and that readability on world alternatives is probably going to enhance over the subsequent few quarters.
The brokerage additionally pointed to Suzlon’s three new smart-blade manufacturing services in Gujarat, Karnataka, and a 3rd location underneath finalisation, aimed toward enhancing logistics effectivity and turnaround occasions.
Motilal Oswal mentioned that rising energy demand pushed by AI-led knowledge centres, EV adoption, inexperienced hydrogen and the industrial & industrial ecosystem might speed up wind installations. Administration expects India to achieve 10GW of annual wind additions by FY28, and with over 95% of Suzlon’s generators performing consistent with lifecycle assumptions, Motilal Oswal sees an extended development runway.
Nuvama’s improve provides to a rising consensus throughout home brokerages: Suzlon’s deep correction could also be much less a warning signal and extra a chance.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Occasions.)
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