Suzlon Energy Stock To See Big Upside? Strong Order Book To Fuel Rally; Check Its Latest Target Price

Suzlon Energy Share Price Today: Healthy order prospects, smoother project execution, and benefit from regulatory tailwinds mandating local content are among the key factors that are likely to boost Suzlon Energy's share price valuation in long-term, according to a Motilal Oswal's report released on Friday, July 11. The green energy stock is likely to see an upside of 24% in the long-term.

Suzlon Energy shares opened marginally higher at Rs 66 apiece, but were trading 0.58% lower at Rs 65.59 per share on BSE on Friday at 12 pm. Its market capitalisation stood at Rs 89,837.04 crore.

Suzlon Energy Share Price Outlook

Suzlon Energy scrip is likely to benefit from its strong order book and potential of better execution in the financial year 2025-26. The adoption the Revised List of Models and Manufacturers (RLMM) notification mandating the adoption of local content for key components in a wind turbine is likely to benefit the Pune-headquartered company. The RLMM notification is likely to come into effect in the second half of the financial year 2025-26.

"According to our discussions with players in the wind industry, the Revised List of Models and Manufacturers (RLMM) notification mandating local content for key components in a wind turbine is likely to be formally adopted in 2QFY26," noted MOFSL in its report.

Additionally, healthy order prospects, including 1.5GW NTPC orders, strong executiuon and increase in EPC share are likely to help the company in improving its business in the coming months.

"Our positive outlook is driven by (i) expected adoption of the RLMM local content draft notification by 2QFY26, (ii) healthy order prospects, including ~1.5GW NTPC orders, where SUEL is a strong contender; (iii) estimated ~4GW of new orders in FY26, taking the closing order book to ~6.5GW; (iv) gradual phase-out of the ISTS waiver over the next four years, which should help to reduce congestion in certain states, supporting smoother project execution; and (v) an increase in EPC share in the order book to ~50%, thus improving execution visibility," read MOFSL's report.

Suzlon Energy Share Price Recommendation

Suzlon Energy shares were trading in red on Friday. In long-term the stock is likely to see a 24% upside in its valuation, according to the brokerage.

"We arrive at our TP of INR82 for SUEL by applying a target P/E of 35x to FY27E EPS. This is at a slight premium to its historical average two-year fwd P/E of 27x, given execution and earnings are just picking up for SUEL."

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