Suzlon Energy shares: More steam ahead? Target price hints at 29% further upside after 12% jump in 5 days

Brokerage firm JM Financial has labelled Suzlon Energy Ltd an ‘unintended beneficiary of the Middle East crisis’, highlighting that in an El Niño year, peak power demand during hot and humid evenings is similar to solar hour demand

However, the brokerage said roughly 80 GW of solar generation is not there to meet this surging demand.

According to JM Financial, the Middle East crisis has caused gas-based power generation to plummet from a typical 8-12 GW down to just 2 GW, leaving an 8 GW supply hole.

JM Financial also pointed out that wind energy exhibits a strong diurnal (daily) complementarity with solar.  “Also, wind energy is highly seasonal and complements solar power, particularly in India where 80% of annual wind generation occurs during the SW monsoon (May-Sep),” the brokerage said.

The Ministry of Power is targeting the addition of 2.4 GW of wind capacity in the first quarter of FY27, a sharp acceleration from the current quarterly run rate of 1.4-1.5GW, it said.

JM Financial expects that Suzlon may report a sharp uptick in commissioning in H1FY27, noting “resulting in cash flow improvement and revival of order inflows.”

Suzlon Energy stock has gained for the fifth straight session on Thursday, rising nearly 12% over the period. The counter is currently trading at Rs 49.51.

Suzlon Energy share price target

The brokerage maintained a ‘Buy’ rating on the Suzlon stock. Against the current market price of Rs 49.51, JM Financial has set a target price of Rs 64, which is based on a 25x multiple on FY28 estimated earnings per share, hinting at a potential upside of  29%.

This valuation assumes healthy execution, with projected deliveries of 2.5 GW, 3 GW, and 3.2 GW for FY26, FY27, and FY28, respectively.