Anand Rathi suggests these two renewable energy stocks on strong finances

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Suzlon Energy and Inox Wind, assigning them 'Buy' ratings. This move comes in light of the renewed attention on the wind-energy sector driven by the government's ambitious growth agendas. “We initiate coverage of these two companies, with Buy ratings, at TPs of respectively Rs49 (35x FY26e PE) and Rs590 (30x FY26e PE)," the brokerage firm said.

The firm has set a target price of ₹49 for Suzlon Energy. The company has a 32 percent market share in India's wind turbines sector, achieved a net-cash status in the first nine months of FY24, marking its first instance since FY06. Also read: Multibagger smallcap stock rallies 14% after bagging ₹386 crore-order from Maharatna PSU; Time to buy? "India’s wind-turbine generators were hit by little capacity added and high debt.

Suzlon, however, with ~32% of India’s installed wind-energy capacity, turned net cash (H1 FY24) for the first time since FY06, while Inox re-structured its balance sheet, which would support faster growth ahead. We expect keener competition as demand recovers, especially from those like Envision," it said in a note. Meanwhile, for Inox Wind, the brokerage firm predicts a target price of ₹590.

With its complete integration in the wind energy sector, Inox Wind is poised to reap the rewards of the sector's upswing, as per Anand Rathi. Following a prolonged period of stagnation since FY17, Suzlon Energy and Inox Wind have witnessed significant boosts in their order books, thereby ensuring earnings stability, according to the brokerage. Additionally, the brokerage noted a decrease in competitive pressure within the sector as several players have exited, leaving only two major players to dominate the market.