Suzlon Energy Share Price : Strong action is being seen in the stock market. The major indexes of the market are recovering from the lows in March. The Sensex and Nifty have gained around 6-6% so far. Smallcap and Midcap have outperformed, which have shown a rise of up to 11%. There is also an opportunity to earn among the greenery returned to the market.
Suzlon Energy Share Price Today
Earning opportunity in multibagger stock
Broking firm Motilal Oswal Financial Services has adopted a positive stance on wind energy company Suzlon. The brokerage has given a ‘buy’ rating on the stock. At the same time, an upside target of Rs 70 has been given on the stock. This is 21% higher than the current share price of Rs 58. Motilal Oswal believes that the rapid growth of India’s renewable energy sector will provide many opportunities for Suzlon Energy.
Suzlon is well-positioned in the wind energy industry, with a global presence in 17 countries. Its installed capacity is 20.9 GW. It has 31% market share in India. The growing demand for wind energy and support from government policies can prove to be beneficial for the company.
Government’s renewable energy target
The Indian government aims to achieve 500GW of renewable energy production by 2030, with wind energy’s contribution expected to increase from 48GW to 100GW. Globally, wind energy accounts for 33-42% of the renewable energy mix in countries like the US, Germany, China and the UK. In India, it is estimated to be around 20%.
To support growth, the government has introduced reforms such as waiving off Interstate Transmission System (ISTS) costs and providing viability gap funding in low-return sectors. These measures are designed to promote wind energy development across the country.
Suzlon has a strong order book
Suzlon’s operations and maintenance (O & M) vertical contributes significantly to its growth prospects. The recent acquisition of Renom Energy has further strengthened its position in the region, improving its long-term outlook. Currently, Suzlon’s order book stands at 5.7 GW, with the commercial and industrial (C & I) vertical contributing 59% of the total.
The government’s decision to give priority sector status to renewable energy will open new avenues of investment. The change will give companies like Suzlon Energy easier access to financing, which will help their expansion plans. Wind energy offers about 1% higher return on investment than solar energy, attracting more developers to it.
Positive outlook of brokerage firm
Despite the increasing competition in the sector, Suzlon can maintain its lead by leveraging its broader experience and strong customer base. Both JM Financial and Investec have given a target price of Rs 70-71 on the shares of Suzlon Energy.
Given the government’s policy support, stable order book growth and strong position of the O & M segment, Suzlon Energy is poised to remain a key player in India’s wind energy sector in the coming years. Brokerage firms predict that the stock will give good returns to investors over time.
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