Suzlon Energy share price target cut by 11% by JM Financial; these are the key triggers

Brokerage firm JM Financial visited one of Suzlon Energy’s plants and maintained its ‘Buy’ rating on the stock. However, what caught the Street’s eye more was the fact that it slashed its price target on Suzlon to ₹71 from ₹80 earlier, an 11% decline from previous levels.JM Financial said it is moderating the P/E (price-to-earnings) multiple from 40 times December 2026 earnings to 35 times March 2027 earnings, given execution challenges constraining growth beyond FY27, and is rolling forward its EPS estimate from December 2026 to March 2027.
The brokerage visited the company’s nacelle and hub assembly plant at Daman, following which it said that initiatives will enhance capabilities to handle more volume and higher-rating wind turbine generators (WTGs).
With its highest-ever, and growing, order book of 5.9 GW, Suzlon remains upbeat about revival of the industry and resolution of execution challenges in the next 2-3 quarters. The company shared that the feedback on performance of the 3 MW WTG has been very encouraging, JM Financial said in its note.”The area of the shop floor is under expansion by converting the existing warehouse into the new hub assembly shop. The capacities of EOT cranes in both shops and loading areas have been increased. With this, the plant can manufacture 4 nacelles/day (+1 no.), the brokerage said.

Execution challenge

According to the note, the company acknowledged execution as a major concern, particularly availability of land with clear RoW (right of way). It is likely to improve after 2-3 quarters. Typically, one WTG requires footprint of 2.5 acres.Suzlon has been focussing on orders where land is available. The land is not in the scope of the company for around 80% of the order book. For the orders from Jindal Renewables, land is available.

The company has land rights for 5.5GW of the capacities in Andhra Pradesh and Rajasthan.

The manufacturing capacity of the company will increase from 3.15 GW to 4.5 GW, taking together capacities at both Daman and Pondicherry plants.

To address increased domestic demand, Suzlon plans to expand its capacity at Daman and restart the similar-sized Pondicherry plant in a phased manner. This will take its rated capacity to over 4.5 GW a year.

Shares of Suzlon Energy Ltd. are currently trading 4.11% higher at ₹57.24. The stock is down 12% so far in 2025.