Business News

The shares of Suzlon Energy (SUEL) have fallen by 31% in the last 6 months, significantly underperforming the Nifty 50 index, which fell over 9% during the same period. Despite this underperformance, domestic brokerage firm Motilal Oswal remains bullish on the stock due to its global leadership in wind energy.The brokerage has initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 70, indicating an upside potential of 21.5% from Tuesday’s closing price.“SUEL is a global leader in wind energy with an installed capacity of ~20.9 GW across 17 countries. It is India's top wind energy service provider with the highest installed capacity of ~15 GW, operating with a vertically integrated structure, including in-house R&D and manufacturing facilities in India. SUEL's operations span wind turbine generator (WTG) sales, project execution, foundry and forging components, and operation and maintenance (O&M) services,” the domestic brokerage firm said.Domestic factors also play an important role in the company’s growth. In March 2024, NITI Aayog proposed approving wind models only if key components like nacelles, blades, towers, and controllers are made in India. It also suggested a 60% local sourcing requirement by value.If implemented, this move could drive strong growth for Indian manufacturers like Suzlon Energy.Further, Motilal Oswal stated that Suzlon Energy is a key player in India’s wind energy growth story. With the country targeting 100 GW of wind capacity by 2030 (up from 48 GW in December 2024), the domestic brokerage firm believes that SUEL is well-positioned through its EPC and O&M businesses.Suzlon leads the sector with 15 GW of installed capacity, ahead of peers like Siemens Gamesa and Vestas. Its acquisition of Renom Energy Services further strengthens its O&M capabilities, allowing it to service turbines from other OEMs and expand its market reach.Also read: India’s stock market rebound is blowing past technical barriersBy 2030, wind energy is expected to contribute 20% to India’s renewable energy mix, offering significant growth potential given the current low penetration. While solar-plus-storage models are emerging, ReNew, a leading RE firm in India, estimates that combining wind with solar and storage can lower energy costs by Rs 0.2–0.3/kWh and boost project returns by 1%. The rise of Firm and Dispatchable Renewable Energy (FDRE) models, which integrate wind, solar, and storage, is likely to drive further investment in wind energy.On the financial side, Motilal Oswal expects Suzlon’s earnings to grow at a 63% CAGR over FY24–27, driven by economies of scale in its Wind Turbine Generator (WTG) segment. Additionally, EBITDA margins are expected to remain strong at 14–16%, supported by a tax shield from carried-forward losses (Rs 61 billion), which could help Suzlon avoid tax liability until H1FY27.Despite increasing investments by global players, the brokerage firm believes that domestic firms like Suzlon are well-positioned to benefit due to their strong presence across the value chain.Western OEMs are avoiding India’s EPC segment due to low margins, and Chinese players are largely absent. Assuming 8 GW installations in FY27, Suzlon’s estimated deliveries could reach 3.2 GW, with Inox Wind expected to supply 2 GW—leaving 2.8 GW up for grabs, underscoring the sector’s massive potential.Also read: Commodity Talk: Silver offers higher upside compared to gold, says Anuj Gupta of HDFC Securities(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

US tariffs on copper imports could be coming within several weeks, months earlier than the deadline for a decision, according to people familiar with the matter. Copper traded in New York rose to a record.US President Donald Trump in February directed the Commerce Department to open an investigation into potential copper tariffs and submit a report within 270 days, though it’s now expected to be resolved sooner, said the people who asked not to be identified because the discussions are confidential. The investigation already is looking like little more than a formality, some of the people said, with Trump having regularly said he plans to impose the tariffs.The administration is proceeding expeditiously with the review, and a conclusion could be possible well before the 270-day deadline, an official familiar with the process said, speaking on condition of anonymity.The White House declined to comment. In February, Peter Navarro, a White House trade adviser, said the investigation would proceed quickly.“You will see our new secretary of commerce, Howard Lutnick, will move in what I like to call Trump time, which is quickly as possible to get results of the investigation on the president’s desk for possible action,” Navarro said.Trump has threatened to impose a duty of as much as a 25% on all copper imports, a move that could roil the global market for one of the world’s most ubiquitous metals, which is used in pipes and electrical cables.Implementing copper tariffs with such haste would stand in stark contrast to the investigations that preceded steel and aluminum tariffs imposed by Trump during his first administration. They took some 10 months to complete. Copper in New York rose as much as 3.1% to a record of $5.3740 a pound, before paring its gain to around $5.3005 a pound. The benchmark price in London fell slightly to $10,100 a ton, widening the gap between the two contracts to more than $1,600 a ton.“Copper is rising quickly, especially in New York, to price in the upcoming 25% tariffs,” said Xu Wanqiu, an analyst at Cofco Futures Co. “Now the risk is prices will quickly retreat if the tariffs are short of 25%,” she said. The large price differential between London and New York created a worldwide dash among traders and dealers to ship the red metal to America to capture a lucrative premium. Such a move has left the rest of the world, especially top consumer China, short of the metal. The president, in his March 5 address to a joint session of Congress, stirred uncertainty when he sought to defend his tariffs. Trump said he had imposed a 25% tariff on foreign aluminum, steel, lumber and copper — a possible slip of the tongue given he only set in motion a formal copper investigation weeks prior.Analysts at Goldman Sachs Group Inc. and Citigroup Inc. in notes to clients have said they expect the US will impose a 25% copper tariff by year’s end. The world’s largest copper-trading firm, Trafigura, has said the price could hit $12,000, from about $10,000 currently.

Mumbai: Investors looking to put money in mid-cap funds through Systematic Investment Plans (SIPs) and do not want to risk losing capital might need a minimum time frame of eight years, if past data are to go by. A study by asset valuation analytics firm Valuemetrics Technologies on monthly rolling returns for SIPs between April 2005 and March 2025 in the Nifty Midcap 150 Total Returns Index showed such investments made for three and five years have incurred losses (see table).SIPs made in this index for 8 to 15 years in this time frame have made money. In comparison, for an investor to be sure that her small cap index SIP investments did not lose money in this period, she had to continue for at least 12 years.Historically, returns from midcaps have tended to be lower compared with small-cap, but the risks of investing in this segment have also been lower.For instance, the highest return made in a three-year SIP in the Nifty Midcap 150 TRI in these 20 years was 37.5% on an annualised basis, lower than 42.1% in Nifty Small Cap 250 Total Returns Index.119505792The value of three-year SIPs in the mid-cap index eroded by as much as 63% in the worst-case scenario in this period, while for small caps it is slightly higher at 64.7%, the study showed. Investors lost 8.2% on an annualised basis in a 5-year SIP in the mid-cap index, but if the SIP continued for a tenure of eight years, the minimum return increased to 1.7%. Investors who continued doing SIPs in Nifty Midcap 150 TRI for 8, 10, 12 and 15 years did not lose money at all, according to the study."Many midcap companies have proven business ideas that are on a high growth track. Hence, they generally tend to have lower volatility than small caps, " says Nikhil Gupta, Founder, Sage Capital.The Association of Mutual Funds in India classifies mid caps as companies ranked between 101and 250 by market capitalisation.Since September 25, when the Nifty Mid cap 150 hit a peak, the index is down 14.45% as against the 13.7% decline in the Nifty Small Cap 250. The value of SIP investments in the Nifty Midcap 150 is down 7.5%. The value of such staggered investments in the Nifty 50 is down 1% in the same period."Conservative investors could make a satellite allocation of 20-30% to established mid and small cap funds through SIPs, with a time frame of 8-10 years," said Anup Bhaiya, Founder, Money Honey Financial Services.(ET's March 25 edition published a similar analysis on small-cap funds)