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Shares of Suzlon Energy Ltd. were trading with gains of as much as 3% on Wednesday, May 14. The stock has gained in three out of the last five trading sessions, while shares of Suzlon are up for the third day running.
Brokerage firm Motilal Oswal has reiterated its 'Buy' rating on Suzlon Energy, with a price target of ₹75 per share. This implies an upside potential of 30% from the stock's last closing level on Tuesday.
The brokerage mentioned in its note that the recent draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) notification mandating local content in wind turbine manufacturing is a key medium- and long-term positive for Suzlon Energy.
According to its channel checks, power project developers will likely request the government for delayed implementation of the draft notification, though there is widespread consensus that the notification being formally adopted is highly likely.
Motilal sees two key implications from the recent draft RLMM notification:
1) Should the draft receive regulatory approval, it sees competitive intensity moderating in the medium term.
2) There is scope for further market share expansion for Suzlon given Indian OEMs account for barely 50-60% of new orders and the company's integrated domestic manufacturing capabilities across all key components.
