Suzlon Energy's share price target goes up to Rs 80. Should you buy after today's dip?
ADVERTISEMENT Four major research houses, Motilal Oswal, ICICI Securities, JM Financial, and Nuvama, said the company's execution momentum, 60% annual growth guidance, and home-market advantages outweigh near-term headwinds such as the CFO's exit later this month.Motilal Oswal reaffirmed its 'Buy' rating, setting a target price of Rs 80, implying a 27% upside from the last closing price of Rs 63, after Suzlon reported Q1FY26 results largely in line with estimates.
The brokerage highlighted 'strong execution at 444MW' – up 62% year-on-year (YoY) – and healthy 19% EBITDA margins. While adjusted profit after tax missed expectations due to a Rs 1.34 billion deferred tax charge, Motilal Oswal cited a potential 700 MW deal with Tata Power and improving per-MW realisations as key upside triggers.ICICI Securities retained a 'Buy' rating with a Rs 76 target, pointing to Suzlon's 'highest-ever Q1 execution' and a swelling 5.7GW order book, about 3.7 times FY25 execution levels. The brokerage said the government's domestic sourcing mandate for wind components gives Suzlon, with ~40% market share, a 'home advantage.'JM Financial, also on a 'Buy' with a Rs 78 target, said operating leverage drove the margin improvement, with the WTG segment's EBIT margin expanding to 15% from 10% a year earlier. The brokerage cautioned, however, that installations have lagged deliveries in recent quarters.
ADVERTISEMENT
Nuvama Institutional Equities kept its stance at 'Hold' and trimmed its target to Rs 67, noting that while Q1 execution of 444MW beat its estimates, lower EPC mix dented realisations.
Unlock 500+ Stock Recos on App The brokerage also flagged the August 31 resignation of CFO Himanshu Mody, who played a key role in Suzlon's turnaround, as a short-term negative.
ADVERTISEMENT For the June quarter, Suzlon posted a 7% rise in consolidated net profit to Rs 324 crore from Rs 302 crore a year earlier. Revenue jumped 55% to Rs 3,117 crore in Q1 FY26, driven by higher wind turbine generator volumes.EBITDA rose 62% to Rs 599 crore in the June 2025 quarter, with margins improving to 19.2%. The order book grew for a 10th straight quarter, bolstered by 1GW of new orders.
ADVERTISEMENT Brokerages expect the company to benefit from India's target of 122GW wind capacity by FY32, with the C&I segment alone requiring 78GW by FY30. The company's management is maintaining its FY26 guidance of 60% growth across deliveries, revenue, and EBITDA.While execution challenges around land and grid connectivity persist, Motilal Oswal, ICICI Securities, and JM Financial see Suzlon's expanding order book, regulatory support, and cost efficiencies sustaining earnings momentum. Nuvama, by contrast, sees limited upside from current levels without a stronger EPC mix.
Also read | Suzlon Energy shares fall over 3% but Motilal sees a rally till Rs 80. Should you buy?
ADVERTISEMENT
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
14 minutes ago
- Indian Express
Mohali MC plans mechanical cleaning of C-roads; Rs 25 crore development works on agenda
The Mohali Municipal Corporation is set to take a major step in city sanitation by introducing mechanical sweeping for C-roads (inner lanes). The proposal will be tabled in the MC meeting scheduled for August 22. Officials said the MC area, including villages, has a road length of 303.44 km, of which 101 km are C-roads. These will now be cleaned weekly by machines. The plan also includes lifting of dry leaves, with an estimated cost of Rs 4 crore over three years. The meeting will also consider development projects worth Rs 25 crore, including laying premix on main roads, installing iron grills, building new libraries, and upgrading community centres. Officials said these projects aim to strengthen Mohali's infrastructure and move the city towards a 'smart city' model. The agenda includes some table items regarding the boundary wall of the dumping collection centre near Sector 74, which has already faced protests from residents. Another proposal seeks to break the monopoly of private garbage collectors by hiring a professional company for door-to-door collection and segregation of waste. This, officials said, is the 'need of the hour'. However, the move has drawn sharp criticism from elected members. Deputy Mayor Kuljit Singh Bedi, former deputy mayor Manjit Singh Sethi, councillor Jasbir Singh Manku and Anuradha Anand, both Finance & Contract Committee members, announced their opposition. They said, 'The MC's experiment of mechanical sweeping on B-roads has already failed. When machines cannot clean B-roads, how can they work on narrow C-roads?' They added that in many villages falling under MC Mohali, C-roads are so congested that 'even a bicycle cannot pass'. The councillors also questioned the fate of existing MC employees who currently clean these 'C' roads. The August 22 meeting is expected to be crucial, with decisions impacting both sanitation and development across Mohali.
Indian Express
14 minutes ago
- Indian Express
Balganga dam project: HC upholds Tribunal order asking state authorities to pay Rs 303 cr to firm
In a setback to Maharashtra government and its authorities, the Bombay High Court earlier this month upheld the majority award passed by the arbitral tribunal in April 2019 that directed the authorities to pay Rs 303 crore to FA Enterprises, a private firm, towards unpaid bills for construction of Balganga dam. The HC through August 12 verdict restored the arbitral tribunal award related to the project of water supply to expanding areas of Navi Mumbai and for drinking and Industrial purposes. The copy of the order was made available on Wednesday. The HC observed 'findings of the Arbitral Tribunal are based on the materials on record and on a proper appreciation of evidence.' The two-judge bench noted that the majority award had held termination invalid as the firm had taken substantial steps to get forest land clearance. Therefore, there was 'no legal basis for the single-judge bench to have upset this finding.' Justice Karnik for the division bench recorded, 'We are satisfied that the view taken by the Arbitral Tribunal on the basis of the evidence on record is a plausible view. In such circumstances there was no scope for the Single Judge to have interfered with the award of the Arbitral Tribunal in the exercise of its jurisdiction under Section 34 of the of the Arbitration and Conciliation Act, 1996.' In a meeting held in January, 2009 under the chairmanship of the then state Water Resources Development (WRD) Minister, it was decided to construct a dam on Balganga river, near Niphad village in Pen taluka of Raigad district to meet the drinking water needs of Navi Mumbai's growing population and industries. The CIDCO was to bear the capital cost for Dam development and would get ownership right over the water and construction was to be executed by the WRD through KIDC. In May, 2009, the KIDC issued a work order to FA enterprises for nearly Rs. 495 crore and in June, 2011, project cost was revised to Rs. 1, 220 crore, which was disputed by CIDCO, compelling it to form expert committees to ascertain the same. 'Due to continuous pressure from banking institutions,' the FA Enterprises in 2013 approached the HC, after which an arbitral panel comprising representatives of the authorities and the firm was formed. The HC appointed its presiding member. Meanwhile, the Anti-Corruption Bureau (ACB) in August, 2015 filed a chargesheet against the firm and others for corruption and other irregularities. The next month, the private firm claimed an amount of Rs 536.56 crore, which the authorities opposed. In 2016, the KIDC terminated the contract of the private firm. Three out of five members of the tribunal in April, 2019 passed a majority award directing KIDC to pay to the private firm a sum of Rs 303 crore, prompting the authorities to challenge it before the High Court. The single-judge bench of the HC in May, 2020 set aside the majority award. Thereafter the aggrieved private firm moved the two-judge bench of HC with appeals against the May, 2020 judgement. Accepting submissions by senior advocate Aspi Chinoy for the firm, the HC on August 12 held that there was no 'patent illegality' in the award and the Tribunal's decision was a 'plausible view,' therefore the same required to be restored.
The Print
42 minutes ago
- The Print
Onion prices double after Bangladesh allows import: farmers' body
However, the rise in the prices of the kitchen staple is still low compared to the production cost, which is over Rs 2,200 per quintal, according to Dighole. 'The prices had slumped to Rs 800-1,200 per quintal in recent months. After Bangladesh allowed the import from India, prices of onions have increased to about Rs 1,500 to 1,600 per quintal,' Maharashtra State Onion Producers Association president Bharat Dighole told PTI. Mumbai, Aug 20 (PTI) Onion prices spiked from about Rs 800 per quintal to Rs 1,600 after Bangladesh allowed its import from India, according to a farmers' association. He said the Bangladesh government's move to allow imports from August 14 to December 13 will provide relief to onion growers. Dighole claimed that agriculturists are facing huge losses due to a glut in the onion crop and higher production costs. 'Onion cultivation in Maharashtra during the rabi season is around 1.45 crore tonnes. Onion producers believe that a substantial balance in domestic supply and export will yield profit,' he added. Lasalgaon in Nashik district has the largest onion market. The Lasalgaon onion market rate serves as a benchmark, influencing onion prices across the Asian market. PTI MR NSK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
