Suzlon Energy Gets 'BUY' Rating, New Target Price Set at Rs 67

Introduction to New Analyst Coverage

Systematix Institutional Equities has initiated coverage on Suzlon Energy Ltd. with a 'BUY' recommendation, establishing a target price of Rs 67 per share. This target is based on a valuation of 30 times the company's estimated first-half earnings for the fiscal year 2028. The new rating comes as Suzlon's stock trades near its 52-week low, offering a significant potential upside from its current market price.

Rationale Behind the 'BUY' Recommendation

Analysts at Systematix highlighted Suzlon's dominant position as a leading provider of wind energy solutions in India. The company's integrated capabilities, which span manufacturing, engineering, procurement, and construction (EPC), as well as operations and maintenance (O&M), are key strengths. Suzlon currently holds approximately 35% of the market share in India's wind turbine installations and is well-positioned to capitalize on the nation's ambitious wind capacity addition targets. The brokerage firm projects a strong growth trajectory for Suzlon, forecasting a compound annual growth rate (CAGR) of 30% in revenue, 39% in EBITDA, and 18% in PAT between FY25 and FY28.

Current Stock Performance and Market Position

On January 23, 2026, Suzlon Energy's stock was trading at Rs 47.04 on the BSE, giving it a market capitalization of Rs 64,505.18 crore. The stock is currently trading near its 52-week low of Rs 45.39 and is significantly off its 52-week high of Rs 74.30. Over the past year, the stock has seen a decline of nearly 15%. Despite the recent price correction, the company's fundamentals remain a point of focus for analysts. Its price-to-equity (P/E) ratio stands at 21.48x, with a high return on equity (ROE) of 77.47%.

Strategic Advantages in the Renewable Energy Sector

Suzlon's strategic advantage is reinforced by India's evolving renewable energy procurement landscape, which is shifting from simple capacity addition to ensuring higher availability. This trend fundamentally favors wind power, especially when integrated with battery energy storage systems (BESS). Such hybrid models improve project economics under Firm and Dispatchable Renewable Energy (FDRE) tenders. With a total manufacturing capacity of 4.5 GW and an installed base exceeding 20 GW, Suzlon's operational scale is a significant asset. The company's improving execution track record further strengthens its position to win and deliver on large-scale projects.

Broader Analyst Consensus

While Systematix has provided the latest rating, other brokerage firms also maintain a positive outlook on Suzlon Energy. Motilal Oswal has a target price of Rs 74, and Anand Rathi has set a target of Rs 82. This broader consensus among analysts points to a shared confidence in the company's long-term prospects, driven by its market leadership and the supportive policy environment for renewable energy in India. The collective view is that Suzlon is a pivotal player in helping India achieve its wind capacity goals.

Financial Health and Future Outlook

The company's financial health appears robust, with a debt-to-equity ratio of 0, indicating a low reliance on debt for its capital structure. This financial discipline, combined with its operational strengths and a strong order book, provides a solid foundation for future growth. The positive outlook is underpinned by the increasing relevance of wind energy in hybrid and dispatchable power tenders, which are becoming more common in India's energy transition. As the country continues to push for decarbonization, Suzlon's role is expected to become even more critical, supporting the positive long-term view held by market analysts.

Conclusion

The initiation of a 'BUY' rating by Systematix, with a target price of Rs 67, underscores the potential seen in Suzlon Energy despite its recent stock underperformance. The company's strong market share, integrated business model, and strategic alignment with India's renewable energy ambitions form the basis of this optimistic outlook. Investors will be watching closely to see if the company's execution and market tailwinds can translate into the projected financial growth and help the stock achieve the targets set by analysts.