MOFSL, which met Suzlon Energy Ltd Executive Vice Chairman Girish Tanti and CFO Rahul Jain to debate the latest management restructuring underneath the Suzlon 2.0 imaginative and prescient, has lower its valuation a number of on the inventory to 27 occasions from 30 occasions earlier, which is broadly consistent with its historic common two-year ahead value a number of. MOFSL stated it displays comparatively weaker sentiment throughout the broader market and inside the energy and renewables sector.
The home brokerage, nevertheless, has retained its ‘Buy’ score on the inventory with a goal of Rs 66 apiece.
“With an order book of 6.5GW, Suzlon Energy has full coverage of our estimated WTG deliveries for 4QFY26/FY27 (0.9GW/3.4GW) and over 50 per cent coverage of our estimated 4GW deliveries in FY28, providing strong medium-term visibility,” MOFSL stated.
MOFSL stated there are nonetheless 40GW of renewable vitality tasks in India pending Power Purchase Agreements (PPAs). Of the 40GW pending PPAs, in keeping with its trade channel checks, plain vanilla photo voltaic represents 17GW, whereas wind accounts for a negligible portion.
MOFSL stated the Suzlon administration highlighted that there’s lively engagement amongst state governments to have these tasks rebid or reconfigured. Once this blockade is cleared, the bidding trajectory ought to scale up, with states additionally enjoying a job in constructing renewable capability, resulting in a broader revival, it stated.
“Based on our estimates, Suzlon Energy is presently buying and selling at 9.9 occasions FY28E Ebitda. This is consistent with or beneath different cap items gamers within the energy sector resembling Thermax (24.4 occasions) and ABB India (42.3 occasions).
Suzlon Energy has introduced a brand new administration framework, together with the formation of a Group Executive Council. JP Chalasani transitioned from Group CEO to a member of the council, Ajay Kapur was appointed Group CEO, and Rahul Jain continued as CFO. The revised construction is geared toward supporting growth into photo voltaic and battery vitality storage techniques whereas sustaining management within the core wind enterprise, MOFSL stated.
“Suzlon has launched DevCo, a dedicated project development vertical, to decouple early-stage development from EPC execution. This initiative strengthens pipeline visibility, enhances readiness for large long-term mandates, and positions the company as a full-stack renewable energy solutions provider,” it stated.
Meanwhile, ICICI Securities lately urged a goal value of Rs 65 on Suzlon Energy.
“With its existing wind business exhibiting strong potential, Suzlon is now eyeing new, yet related, frontiers. It
has announced a major leadership restructuring as part of its ‘Suzlon 2.0’ vision, aiming to transform into a full-stack, diversified renewable energy solutions provider. The new management structure is designed to expand into project development across wind, solar and BESS, while Suzlon maintains its stronghold in the existing wind business,” ICICI Securities stated.
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