Mumbai: Shares of Suzlon Energy have risen sharply, gaining over 20 percent in the past month and around 10 percent in just five days. The rally comes as India faces rising temperatures, which increase electricity demand, especially during evening hours.
Brokerage JM Financial believes the stock can rise further, with a target price of Rs 64. This suggests an upside of more than 30 percent from current levels near Rs 49.
Why Iran–US Tensions Help Suzlon?
The ongoing tensions between Iran and the United States have impacted global energy supply, especially gas availability.
Gas-based power generation in India has dropped sharply from 8–12 GW to just about 2 GW. This has created a supply gap, making alternative energy sources like wind more important.
Because of this, Suzlon is seen as an 'unintended beneficiary' of the situation.
Wind Energy Becomes Crucial In Evenings
Solar power is not available at night, creating a big gap during peak evening demand. Around 80 GW of solar capacity becomes unavailable after sunset.
Wind energy helps fill this gap. Wind speeds are usually higher in the evening and early morning, making it a strong support for the power system.
Currently, wind contributes around 10 GW in evenings and can go up to 20–25 GW during peak monsoon months.
Execution Improvement May Boost Growth
Suzlon had earlier faced delays between installations and project commissioning. However, JM Financial expects improvement in execution during the first half of FY27.
Better commissioning could improve cash flows and lead to more new orders, supporting future growth.
Should You Buy Suzlon Shares?
JM Financial has maintained a ‘Buy’ rating on Suzlon, citing strong demand outlook and improving execution.
While the stock is slightly down in 2026 so far, it has delivered strong long-term returns, rising over 500 percent in five years. The current momentum and sector tailwinds may continue to support the stock.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Please consult a certified financial advisor before making any investment decisions.
