Latest news with #RLMM
Mint
3 days ago
- Business
- Mint
Mutual funds boost holding in Suzlon Energy to an all-time high in June quarter
Mutual funds increased their bets on Suzlon Energy in the June quarter, as the latest shareholding data reveals that domestic fund houses collectively picked up an additional 1.07% stake in the wind energy company during the period. As of the end of June 2025, 30 mutual funds collectively held a 5.24% stake in Suzlon Energy, equivalent to 7.18 crore shares. This marks a notable increase from 4.17% at the end of the March quarter and 3.82% in Q1FY25, according to BSE shareholding data. The data also shows that Motilal Oswal Midcap Fund now holds a 1.03% stake in the company—a new addition, as the fund had no holdings in Suzlon at the end of March. Meanwhile, the Life Insurance Corporation of India (LIC) continues to hold a 1.02% stake. Retail investors also slightly increased their holdings by 0.1% to 55.1%, while promoters trimmed their stake to 11.7% from 13.3% in Q1FY25. Suzlon has remained on investors' radar in recent months due to positive brokerage views and multiple orders. Motilal Oswal, for instance, recently issued a 'buy' rating with a target price of ₹ 82 per share. The brokerage's optimism is driven by the expected adoption of the Revised List of Models and Manufacturers (RLMM) local content draft notification by Q2FY26, strong order prospects, the gradual phase-out of the ISTS waiver over the next four years, and an increasing share of EPC projects in the order book. Discussions with industry participants suggest that the RLMM notification—mandating local content in key wind turbine components—is likely to be formally implemented in Q2FY26. Motilal Oswal believes that Suzlon is well-positioned to benefit from favorable regulatory developments, a growing order book offering strong revenue visibility, and operational gains through proactive land acquisition and EPC expansion. Earlier, Anand Rathi also noted that Suzlon's 5.6 GW order book, which is 3.6x its FY25 execution volume, provides long-term growth visibility and ensures a steady pipeline of projects. It also reinitiated coverage with a 'buy' rating and a target price of ₹ 81 apiece. Despite these positive projections, the stock has come under pressure in recent months due to broader market weakness, declining 12% from its recent highs. However, Suzlon remains a strong long-term performer, with shares rising 277% over the past two years and over 1,200% in the last five years. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
The Hindu
5 days ago
- Business
- The Hindu
Wind industry players call for phased approach in government's localisation timeline
The domestic wind energy sector has voiced operational concerns regarding a recent draft amendment by the Ministry of New & Renewable Energy's (MNRE) towards boosting domestic manufacturing. The draft mandates rapid localisation of key wind turbine components for inclusion in the Revised List of Models and Manufacturers (RLMM). Industry players said a phased and industry-aligned approach could avoid potential supply chain bottlenecks and significant cost increases. The two-year timeline for indigenisation could create unintended hurdles in supply chains, delay project rollouts, and potentially escalate project costs by over 35%, they said. Many critical sub-components such as gearboxes, bearings, converters, and control systems are currently imported. An immediate localisation mandate, without adequate phase-outs, may discourage foreign OEMs and slow project rollout timelines, they stated. 'India is at a pivotal juncture in its wind energy journey. For component manufacturers like us, the momentum toward 500 GW of renewable capacity presents significant opportunities—from global supply chain shifts post-COVID to the growing push for localisation,' said V Sriniwas Reddy, Executive Director, Synergy Green Industries Ltd. 'However, policy execution must balance ambition with realism. The recent MNRE directive on indigenisation, while well-intentioned, needs a phased, industry-aligned approach,' he said. Stating that precision parts like gearboxes and converters require not just capex, but tech partnerships and skilled talent, he said the ministry instead of blanket targets, should focus on enabling quality manufacturing, selective localisation, and global competitiveness. 'A National Wind Industrial Cluster Policy—with plug-and-play infrastructure and shared R&D—is the kind of reform that will truly empower the ecosystem. The way forward is through collaboration: OEMs, component makers, and policymakers aligning for long-term, scalable, and export-ready growth,' he said. 'India has the potential to become the world's third-largest wind market—but only if we prioritize quality, investor confidence, and global integration over short-term mandates,' he added. Francis Jayasury, Director -India, Global Wind Energy Council India – GWEC India said, 'India's renewable energy ambitions present a remarkable opportunity for domestic turbine component manufacturers like us—but success will depend on how smartly we align industrial growth with policy execution.' 'Our Chennai facility is already geared for scale and meets global quality benchmarks, but we face challenges from subsidized imports, fragmented tariffs, and the absence of mandatory standards for key components like anchor cages,' he said. 'We welcome the MNRE's push for indigenisation—it plays to our strengths—but urge that it be implemented through a phased, industry-aligned framework. Not every component needs to be made locally; smart localisation, not forced isolation, should guide our strategy,' he emphasised. 'The focus must be on full utilisation of existing domestic capacity, while partnering globally for highly specialized technologies. If India wants to become a true global wind manufacturing hub, what we need is certainty: clear HS code classifications, BIS standards for structural components, and export-linked incentives,' he said. A unified framework would not only boost production and exports but also build long-term investor confidence in the sector, he pointed out.
Mint
11-07-2025
- Business
- Mint
Suzlon Energy share price gets another bullish target as Motilal Oswal sees it rising to ₹82
Suzlon Energy continues to stay on analysts' radar as brokerage firm Motilal Oswal reiterated its positive outlook on multibagger renewable energy stock Suzlon Energy with a 'buy' rating with a target price of ₹ 82 apiece. This comes just days after Anand Rathi also projected a similar target of ₹ 81 apiece, as it reinitiated coverage with a 'buy' rating. The brokerage's positive outlook on the stock stems from the expected adoption of the RLMM local content draft notification by Q2FY26, strong order prospects, the gradual phase-out of the ISTS waiver over the next four years, and a rising share of EPC projects in the order book. According to brokerage discussions with players in the wind industry, the Revised List of Models and Manufacturers (RLMM) notification mandating local content for key wind turbine components is likely to be formally adopted in Q2FY26. It also added that contract awards for approximately 1.5 GW of NTPC orders are expected soon, where Suzlon is seen as a strong contender. The brokerage further highlighted that the share of EPC (engineering, procurement, and construction) projects in Suzlon's overall order book is likely to rise from around 20% currently to about 50% in the medium term, improving execution visibility. Moreover, with the tax rate set to kick in from the second half of FY27, the brokerage believes Suzlon is likely to resort to debt—primarily for working capital needs—thereby enhancing balance sheet efficiency and sustaining returns on equity (RoEs). The brokerage believes that the company stands to benefit from regulatory tailwinds mandating local content, a robust and growing order book that ensures strong revenue visibility, and operational improvements driven by proactive land acquisition and EPC expansion initiatives. Earlier, Anand Rathi noted that Suzlon's order book of 5.6 GW, which is 3.6 times its FY25 execution volumes, offers strong long-term growth assurance and ensures a steady project execution pipeline. After maintaining a steady upward trend between March and May, Suzlon Energy share price has come under pressure in recent months, amid broader weakness in the Indian stock market. Suzlon Energy stock declined 5.3% in June and has fallen another 3% so far in July. However, it remains a strong long-term performer, with Suzlon Energy shares rising 277% over the past two years and over 1,200% in the last five years.
Mint
11-07-2025
- Business
- Mint
Suzlon Energy share price gets another bullish target as Motilal Oswal sees it rising to ₹82
Suzlon Energy continues to stay on analysts' radar as brokerage firm Motilal Oswal reiterated its positive outlook on multibagger renewable energy stock Suzlon Energy with a 'buy' rating with a target price of ₹ 82 apiece. This comes just days after Anand Rathi also projected a similar target of ₹ 81 apiece, as it reinitiated coverage with a 'buy' rating. The brokerage's positive outlook on the stock stems from the expected adoption of the RLMM local content draft notification by Q2FY26, strong order prospects, the gradual phase-out of the ISTS waiver over the next four years, and a rising share of EPC projects in the order book. According to brokerage discussions with players in the wind industry, the Revised List of Models and Manufacturers (RLMM) notification mandating local content for key wind turbine components is likely to be formally adopted in Q2FY26. It also added that contract awards for approximately 1.5 GW of NTPC orders are expected soon, where Suzlon is seen as a strong contender. The brokerage further highlighted that the share of EPC (engineering, procurement, and construction) projects in Suzlon's overall order book is likely to rise from around 20% currently to about 50% in the medium term, improving execution visibility. Moreover, with the tax rate set to kick in from the second half of FY27, the brokerage believes Suzlon is likely to resort to debt—primarily for working capital needs—thereby enhancing balance sheet efficiency and sustaining returns on equity (RoEs). The brokerage believes that the company stands to benefit from regulatory tailwinds mandating local content, a robust and growing order book that ensures strong revenue visibility, and operational improvements driven by proactive land acquisition and EPC expansion initiatives. Earlier, Anand Rathi noted that Suzlon's order book of 5.6 GW, which is 3.6 times its FY25 execution volumes, offers strong long-term growth assurance and ensures a steady project execution pipeline. After maintaining a steady upward trend between March and May, Suzlon Energy share price has come under pressure in recent months, amid broader weakness in the Indian stock market. Suzlon Energy stock declined 5.3% in June and has fallen another 3% so far in July. However, it remains a strong long-term performer, with Suzlon Energy shares rising 277% over the past two years and over 1,200% in the last five years. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Economic Times
11-07-2025
- Business
- Economic Times
Motilal Oswal sets the highest-ever target price for Suzlon Energy shares at Rs 82; here's why
Motilal Oswal has issued a 'Buy' call on Suzlon Energy with its highest-ever target price of Rs 82, implying a 24% upside. The brokerage cites benefits from upcoming local content mandates, a strong order book, and improved execution through land acquisition and EPC expansion. The RLMM policy, mandating local sourcing, is expected to be formally adopted in Q2FY26. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Believing that Suzlon Energy Ltd (SUEL) stands to benefit from local content mandates, a strong order book ensuring revenue visibility, and improved execution via land acquisition and EPC expansion, domestic brokerage firm Motilal Oswal has assigned its highest-ever target price for the stock at Rs Oswal has given a 'Buy' rating and sees an upside potential of 24% from Thursday's closing price on the BSE.'SUEL stands to benefit from regulatory tailwinds mandating local content, a robust order book providing strong revenue visibility, and execution improvements through proactive land acquisition and EPC expansion initiatives,' the brokerage said in a Revised List of Models and Manufacturers (RLMM) notification mandating local content in wind turbines is expected to be formally adopted in Q2FY26. While developers have sought up to a year for implementation, policy intent remains Oswal believes this could be a tailwind for Suzlon the company's order outlook remains strong, with potential NTPC awards of 1.5 GW expected soon. FY26 total orders are estimated at 4 GW, which could raise the order book to 6.5 GW — surpassing the previous peak of 5.6 the brokerage flagged execution as a continuing challenge in the wind sector, with FY25 capacity additions at 4.2 GW, still below the 5.5 GW peak in FY17. That said, larger turbine sizes and the expansion of projects across more states could help exceed past are playing a more active EPC role as their financials improve, with early land acquisition becoming more common. The shift to a land lease model and the phasing out of ISTS waivers should also ease execution bottlenecks. For Suzlon, the EPC share in the order book is expected to rise from 20% to 50% in the medium term, enhancing execution read: HUL shares rally 4% as Priya Nair gets CEO role: Why D-St is betting big on India's new consumer queen Suzlon's cash conversion cycle (CCC) is also projected to improve by 30–35 days over the next few years, aiding free cash flow generation. This improvement will be driven by slower growth, better inventory control from rising EPC share, and stronger supplier bargaining 2HFY27 onwards, the company may also use more debt to meet working capital needs, improving balance sheet efficiency and sustaining return on equity (RoE).Given this outlook, Motilal Oswal has applied a target P/E of 35x to FY27E EPS — a slight premium to its historical two-year forward P/E average of 27x — as execution and earnings momentum are only beginning to pick up for Suzlon of noon today, shares of Suzlon Energy were trading 0.7% lower at Rs 65.51 on BSE.
