Suzlon is a Buy for 73% upside (TP ₹65). Valuation is at 20% discount & attractive due to improved earnings visibility. It has 3 new growth engines. Order book is strong & provides 100% visibility on estimated deliveries through 3QFY28. EBITDA CAGR of 22% over FY26-28E expected.
Research report by Motilal Oswal
“India wind installations to reach new high Attractive valuation with improving earnings visibility: Suzlon’s (SUEL) stock price has corrected 31% over the past three months and is currently trading at 17.5x FY28E EPS, a 20% discount to its one-year fwd mean -1SD of 22x. Given the seasonal nature of earnings with 2H typically contributing 60-65% of annual EBITDA, we expect earnings momentum to strengthen in 2HFY27 as deliveries are expected to rise to 2.1GW from est. 1.2GW in 1H.
Strong order book and earnings growth outlook: The company’s order book stood at 5.9GW as of 1QFY27-end (~1.3GW of order inflows in FY27YTD), providing 100% visibility on our estimated deliveries through 3QFY28. We estimate SUEL to deliver EBITDA CAGR of 22% over FY26-28E.
Wind capacity additions on track to meet FY27 targets: India added ~3GW of wind capacity in 1HFY27. Historically, as 2H installations have been 1.5x those in 1H, the implied addition of ~4.5GW in 2HFY27 would take FY27 additions to ~7.5GW, in line with the MNRE’s expectation of 7.5-8.0GW.
Evening peak demand strengthens the case for wind: Rising power demand, particularly during evening peak hours, should support greater deployment of wind capacity through wind-solar hybrid and FDRE projects. As highlighted in the EAC-PM paper (Jul’26), average May evening peak prices rose from INR8.08/kWh in 2023 to INR9.40 in 2025 and INR9.71 in 2026. We believe strong merchant power prices in late evening reinforce the economic case for wind capacity.
Valuation and view: We retain BUY with a TP of INR65, based on 30x FY28E EPS, a slight premium to its historical average two-year fwd P/E of 27x.”
