Multibagger stock: Motilal Oswal sees 30% upside in Suzlon share price after 2,300% rally in five years
Suzlon Energy share price rose by almost 5% during Wednesday's trading session, marking the third consecutive day of gains after brokerage Motilal Oswal reaffirmed its 'Buy' recommendation on the multibagger stock.
The brokerage set a target price for Suzlon Energy shares of ₹ 75 apiece, suggesting a potential upside of 30% compared to the stock's closing price on Tuesday.
The brokerage noted in its report that the newly-issued draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) requirement for local content in wind turbine production is a significant positive factor for Suzlon Energy in the medium and long term.
Based on its investigations, power project developers are expected to ask the government for a postponement of the draft notification's implementation, although there is broad agreement that the notification's official adoption is quite probable.
Motilal identifies two main implications from the recent draft RLMM notification. First, if the draft is approved by regulators, it expects a decrease in competitive intensity in the medium term. Second, there is potential for Suzlon to increase its market share further, as Indian OEMs currently represent only about 50-60% of new orders, and the company has integrated domestic manufacturing capabilities for all essential components.
Motilal reports that Suzlon aims to increase its proportion of EPC contracts in its total order book from the current 20% to 50% in the medium term, which will be crucial for enhancing visibility and control regarding deliveries.
'Further, Indian OEMs are now exploring export opportunities that may emerge as a medium-term catalyst. While transmission issues have been a bottleneck, recent channel checks suggest some of the delayed sub-stations are now coming up, thus aiding deliveries,' the brokerage said.
The brokerage projects a delivery of 2.4GW for FY26, suggesting a quarterly run rate of 600MW, which it considers plausible. The estimates from the brokerage indicate that the company's revenue and adjusted PAT will grow at CAGRs of 46% and 58%, respectively, from FY25 to FY27. Based on the brokerage's insights, significant land acquisitions for key orders planned for FY26 have already been completed, and there is a clear visibility on power evacuation.
Suzlon Energy share price today opened at ₹ 57.84 apiece on the BSE, the stock touched an intraday high of ₹ 60.30 per share, and an intraday low of ₹ 57.43 apiece. Shares of Suzlon Energy have surged almost 2,300% in five years, providing multibagger returns for its investors.
'We reiterate our BUY rating on SUEL with a target price of ₹ 75 (based on 32x FY27E EPS). Suzlon Energy is currently trading at 24x FY27E PE, which we believe is attractive after the recent correction,' the brokerage said.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
37 minutes ago
- Hans India
Tata-Dassault fuselage deal will boost manufacturing in general
The signing of four Production Transfer Agreements by Dassault Aviation and Tata Advanced Systems Limited (TASL) to manufacture the Rafale fighter fuselage in India is a big fillip to not just defence production in the country but also manufacturing in general. The French plane-maker rightly said that it marks 'a significant step forward in strengthening the country's aerospace manufacturing capabilities and supporting global supply chains.' The fuselage of an aircraft is its central body portion, excluding the engines, tail, and wings. It houses the cockpit, avionics, fuel, and payload—essentially serving as the backbone of the aircraft. In the case of Rafale, a multirole fighter jet renowned for its agility, advanced avionics, and combat effectiveness, manufacturing the fuselage involves high-precision engineering, advanced composites, and tight tolerances. Bringing such a sophisticated process to Indian soil reflects the maturity of the country's aerospace manufacturing environment and the trust global original equipment manufacturers (OEMs) are increasingly placing in Indian firms. In recent years, numerous Indian companies have emerged as key players in the defence manufacturing sector, contributing to the country's vision of self-reliance under the Atmanirbhar Bharat programme. Major public sector undertakings like Hindustan Aeronautics Limited, Bharat Electronics Limited, and Bharat Dynamics Limited have long been at the forefront of producing aircraft, radars, missiles, and other critical defence systems. Alongside them, private sector giants such as TASL, Larsen & Toubro (L&T), Mahindra Defence Systems, and Bharat Forge have significantly expanded their footprint in defence production. These companies manufacture a wide range of equipment, including artillery systems, armoured vehicles, UAVs (unmanned aerial vehicles), and missile components. Their growing capabilities are further boosted by partnerships with global defence firms, enabling technology transfer and joint ventures. This robust participation from both public and private sectors is crucial for reducing import dependence and building a strong, indigenous defence industrial base. The Dassault-TASL partnership is a testament to the vision of the Make in India initiative, which has been pushing for increased localisation in defence procurement. By transferring production capabilities to India, Dassault is enabling Indian companies to climb up the value chain—from low-end assembly to high-end design and production. The collaboration with TASL, a company already experienced in aerospace production, enhances India's ability to build a complex, high-performance defence product and helps cultivate a local ecosystem of skilled workers, advanced suppliers, and engineering talent. Furthermore, this move significantly reduces India's reliance on imports for critical defence hardware, contributing to strategic autonomy. Over the decades, India has been one of the world's largest arms importers. While importing advanced weapon systems has been necessary to meet immediate defence requirements, long-term sustainability lies in indigenisation. The Rafale fuselage manufacturing agreement is, therefore, more than a business deal—it is a step toward building a sustainable and technologically advanced defence industrial base within India. The economic implications of this development are equally profound. High-technology manufacturing generates employment across the value chain—from technicians and engineers to logistics and quality assurance personnel. The joint venture will not only create direct employment but also foster ancillary industries, leading to the development of an aerospace manufacturing cluster with potential spillover benefits to the civilian aviation sector. The infrastructure and capabilities established through this programme can later be leveraged for commercial aerospace production, such as passenger aircraft components, thereby further integrating India into the global aerospace supply chain.
Time of India
an hour ago
- Time of India
Indians eye other visa routes amid H-1B uncertainty, layoffs
Amid tightened scrutiny of H-1B work visa applications and ongoing tech layoffs in the US, Indian professionals and their employers are increasingly looking at other non-immigrant visas such as L-1 and O-1, immigration experts said. There is also a spike in demand for EB-5 immigrant investor visas. While these developments are not new, there has been an increase in the number of people seeking help in the past few months, US immigration attorney Gnanamookan Senthurjothi told ET. The new Donald Trump administration has tightened scrutiny of H-1B visas since taking office early this year. According to the data from the United States Citizenship and Immigration Services (USCIS), the number of H-1B visa applications shortlisted this year has declined 27% on year—the lowest since the pandemic-impacted FY21. Every year, the US has been approving 85,000 H-1B visas for foreign workers, with Indians securing close to 70% of these visas. Layoffs by tech majors including Microsoft, Google and Intel have added to the anxiety of Indians working in the US. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at immigration firm Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.' All this has led to an uptick in demand for L-1 and O-1 visa categories, which do not have annual limits like H-1B. While L-1 visa is for intracompany transfer, O-1 is for those possessing extraordinary ability in the areas including science, arts or business. Visa alternatives 'Part of this (spike in L-1 and O-1 demand) is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of this appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.' Sukanya Raman, country head - India & GCC practice team at Davies & Associates LLC, said, 'What we are also seeing is that some companies are transferring their employees to other countries such as Canada or somewhere outside of the US for a brief time so that they will qualify for L-visa.' This applies to those in the managerial position and can eventually transition to EB-1C to get the US green card, she said. Some are also considering EB-2 NIW (National Interest Waiver), which is for individuals possessing advanced degrees that are working for national interest in the US, Raman said. The demand for EB-5 investor visas has also increased 50% since January 2025. 'These are in current status for Indian nationals, which means that visas are available and can get their authorisation and travel documents in 3-6 months,' Raman said. 'This will allow them to legally stay in the US.' The EB-5 is particularly in demand from Indian families who are currently in H-1B and their children are aging out, which refers to children who are turning 21 before parents get their green card, she said.
Mint
an hour ago
- Mint
Tata Motors, JLR flag EV supply chain as a separate business risk. They don't name China, but its imprint is all over.
New Delhi: Tata Motors Ltd and Jaguar Land Rover have separately highlighted risks to their electric vehicle business for the first time ever, including potential production delays and shortages, likely as a result of China's stranglehold over the EV supply chain. Introducing a new element in their annual report's principle risks segment, titled 'electrification transition', Mumbai-based Tata Motors and its UK-based subsidiary JLR have both underscored the threat of financial losses if the transition to clean technology is not carefully managed. 'Unmanaged supply chain issues can lead to production delays and shortages," the companies said in their annual reports for 2024-25 without mentioning any specific potential trigger. No other homegrown automaker has mentioned electric transition as a separate business risk in their annual report. The disclosures in Tata Motors's and JLR's annual reports come as automakers globally are grappling with China's export restrictions on rare earth magnets. India's auto sector has conveyed to the Union government that production cuts could begin as early as this month if China doesn't resume exports of rare earth magnets, which are used to make electric motors and other parts for EVs. They also flagged that while China has resumed exports of rare earth magnets to foreign companies, applications by Indian automakers remain stuck. As per several estimates, China controls about 80% of the global lithium-ion battery market and about 90% of the global supply chain for rare earth magnets. 'There is a need for the magnets for both EVs and ICE (internal combustion engine) vehicles," Shailesh Chandra, managing director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, told Mint in an interview. 'Different OEMs (original equipment manufacturers, or carmakers) are in different positions with respect to the stock of the magnets." For the long-term, Tata Motors and JLR are investing towards increasing their capacity to manufacture key components. 'To support this electrification, Tata Group's Agratas is to construct the UK's largest battery cell facility in Somerset, which will provide high-performance battery cells for our new electric models," Jaguar Land Rover noted in its annual report. 'Additionally, we are making significant continued investment in upgrading our core facilities and supply chain for electrification." Agratas Energy Storage Solutions Pvt. Ltd is the Tata Group's battery business, with Tata Motors and JLR as its anchor customers. Also read | China's restriction on rare earth magnets repel Indian EV players China's shadow Tata Motors has raised concerns even earlier about its electric vehicle business's direction in international markets, but that was due to a demand slowdown in Europe and the US. 'Given the uncertainty around the pace of EV adoption in key markets, the company may need to extend the life of its ICE platforms beyond the originally planned timeline. It may also consider launching new ICE variants in the future," analysts at Motilal Oswal wrote in a 11 March note. In its latest annual report, Tata Motors has also highlighted its efforts to localise the battery supply chain that is currently dominated by China. Tata Motors's lead in the electric vehicles segment is being aggressively challenged by MG Motor India, Mahindra & Mahindra Ltd, and Hyundai Motor India Ltd, with its domestic EV market share dropping to 55.4% in 2024-25 from 73.1% in FY24 and 84% in FY23. Experts believe the looming shadow of China on the EV supply chain is an identified risk factor for automobile companies. 'Whether it's batteries or magnets, China has established a dominant lead in the supply chain, which is bound to be a risk for domestic and global OEMs," said Abhishek Saxena, former public policy expert at government think-tank Niti Aayog. 'The current magnet crisis shows that supply concentration can have a business impact." Also read | Indian auto stuck in queue as China clears rare earth magnets for others After US President Donald Trump in April announced reciprocal tariffs on countries across the world, China began restricting the export of rare earth magnets. The Chinese government has started asking for end-user certificates declaring that the products made using its rare earth magnets will not be used for defence purposes. But, as per automakers, the process to obtain the certificates is long and arduous, requiring multiple layers of approvals from provincial governments in China and the Chinese commerce ministry. 'Stocks are fast depleting. So far, 30 applications have been submitted to China, but none has received final approval. The Chinese government has said that final approvals will take about 45 days," Rakesh Sharma, executive director at Bajaj Auto Ltd, said during a post-earnings media call on 29 May. Bajaj Auto has warned about severe production cuts starting July if the rare earth magnet issue isn't resolved.
