Shares of Suzlon Energy have surged 20% in a month, with JM Financial identifying the company as an “unintended beneficiary” of the war between Iran and the US. JM Financial sees another 30% upside potential from current levels. The brokerage noted that rising power demand and reduced gas and hydro output due to the conflict have increased the relevance of wind energy.
Gas-based generation has fallen from 8-12GW to just 2GW, and there is a high probability of a hydro energy shortfall this summer. Wind energy complements solar power, particularly in India, where 80% of annual wind generation occurs during the South-West monsoon. JM Financial expects India to achieve its highest-ever capacity addition in FY27.
The brokerage maintained a ‘Buy’ call on the stock, with a target price of Rs 64 apiece, implying an upside potential of more than 30% from the previous closing price of Rs 49.13 apiece. Suzlon Energy shares were trading at around Rs 49.41.
