Suzlon shares: 73% upside likely for the multibagger post recent correction; what else MOFSL says

Attractive valuation and improving earnings visibility

Suzlon Energy’s (SUEL) share price has declined 31% over the past three months and is currently trading at 17.5x FY28E EPS, a 20% discount to its one-year forward average minus one standard deviation valuation of 22x, says MOFSL. Given the seasonal nature of its earnings, with the second half typically contributing 60-65% of annual EBITDA, earnings momentum is expected to improve in 2HFY27. Deliveries are estimated to increase to 2.1 GW during the second half from an estimated 1.2 GW in the first half.

Robust order book supports earnings growth

Suzlon’s order book stood at 5.9 GW at the end of Q1FY27, with approximately 1.3 GW of order inflows recorded in FY27 so far. The existing order pipeline provides complete visibility for the estimated delivery schedule through Q3FY28. The company is projected to deliver an EBITDA compound annual growth rate (CAGR) of 22% over FY26-28E.

Wind capacity additions on track to meet FY27 targets

India added approximately 3 GW of wind power capacity in the first half of FY27. Historically, wind installations in the second half have been around 1.5 times those recorded in the first half. Applying this trend implies additions of nearly 4.5 GW in 2HFY27, taking total installations for FY27 to approximately 7.5 GW. This would be in line with the Ministry of New and Renewable Energy’s (MNRE) estimated annual addition target of 7.5-8 GW.

Evening peak demand strengthens the case for wind energy

Rising electricity demand, particularly during evening peak hours, is expected to support further wind capacity deployment through wind-solar hybrid and firm and dispatchable renewable energy (FDRE) projects. According to the July 2026 paper by the Economic Advisory Council to the Prime Minister (EAC-PM), average electricity prices during May evening peaks increased from Rs 8.08 per kWh in 2023 to Rs 9.40 in 2025 and Rs 9.71 in 2026. Sustained strength in merchant power prices during late-evening hours could further improve the economic viability of wind power projects.

Valuation view

The brokerage maintains a BUY rating on Suzlon Energy with a target price of Rs 65, valuing the stock at 30x FY28E EPS. This valuation represents a modest premium to the stock’s historical two-year forward price-to-earnings average of 27x, supported by improving earnings visibility, a healthy order book and the favourable outlook for wind energy capacity additions. In the current session, the stock rose 4.15% in the current session, hitting the Rs 39 mark against the previous close of Rs 37.58. Market cap of the firm stood at Rs 53,651 crore.

About Suzlon Energy

Suzlon Energy is a provider of renewable energy solutions. The  company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.