Farukbhai Gulambhai Patel, chairman and managing director, KP Group said, “This project is in line with our goal to unlock India’s renewable energy potential and power the commercial and industrial sectors. As India’s leading renewable energy solutions provider with proven technology, Suzlon is the right partner for us. We have had a long and fruitful association with Suzlon in the past using their cost-effective Made-in-India solutions to create an ‘Aatmanirbhar Bharat’.”

Recently, ICICI Securities initiated coverage on the stock with a ‘Buy’ rating and target price of ₹22 per share which implies a multiple of 24 times its FY25 earnings per share (EPS). The agency believes that the wind turbine manufacturer is best equipped to benefit from industry tailwinds and will see a sharp uptick in earnings FY24E onwards.

“India has launched a series of policy initiatives: 1) single-stage closed bidding (vs reverse e-auction), 2) 10GW of wind auction per annum, and 3) wind-specific RPOs etc. These policies are likely to generate tailwinds for the industry and, we believe, Suzlon Energy, the market leader, is best suited to reap the benefits of the same,” the brokerage said in a report released on June 29.

Suzlon enjoys a market share of 33% in India’s domestic market (based on total installations), while it has 20 GW of operational wind power capacity globally and is well ahead of its competitors. The company’s existing order book stands at 1.5 GW, which bodes well for execution through the next 2 years.

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The KP Group

Suzlon Energy shares jump 5% on bagging new order