MOFSL in its latest note on Suzlon Energy Ltd said the renewable energy solutions provider continued to stand out as the most credible and investible player in the Indian wind space, supported by its strong market position and consistent track record of meeting execution and operational guidance. The domestic brokerage said Suzlon's Investor Day addressed key medium to long term growth concerns by outlining a clear roadmap for expansion and diversification into adjacent renewable energy verticals, which enhance earnings resilience. 

"While the strategic direction is encouraging, investors are likely to remain focused on execution, capital allocation discipline, and the trajectory of working capital and leverage metrics," MOFSL said. The brokerage suggested a 'Buy' rating on the stock, with a target price of Rs 65 on Suzlon Energy. 

Suzlon has guided for revenue growth of over 25 per cent compounded annually, expansion of its Indian wind market share to over 40 per cent from 33 per cent and achieving a 15 per cent market share in the solar and BESS segment.

With a growing share of Firm and Dispatchable Renewable Energy (FDRE) and Round-the-Clock (RTC)
tenders, wind is expected to play an increasingly important role, as Wind Solar-BESS projects offer a more cost-effective solution for dispatchable renewable energy than Solar+BESS-only configurations. 

"This is reflected in recent tariff discoveries, with Wind-Solar Hybrid (Peak supply) projects at Rs 3.35/kWh compared with Rs 6.27/kWh for Solar+BESS only FDRE projects. The complementary generation profiles of wind and solar reduce storage requirements, lowering the overall cost," MOFSL said.

The domestic broking firm said 165GW of new wind capacity was added globally last year, providing a large addressable market for turbine manufacturers. Europe, it noted, is expected to reach 2,000GW wind capacity by 2030. It is viewed as an ideal export market, given its relatively favorable geopolitical relations, a strong policy focus on the green transition, and the presence of some of the world’s largest renewable energy developers, access to whom is expected to offer Suzlon a meaningful global scale. 

"Annual wind capacity addition demand of 18GW is expected alongside a sizeable repowering opportunity of a similar magnitude of 18-20GW. On the back of this expanded product portfolio and the European repowering opportunity, Suzlon is targeting an export order intake of over 3GW by FY31, with exports contributing 15 per cent of overall revenue by that year," MOFSL said.