Global brokerage firm Nomura has retained its ‘Buy’ recommendation on the stock, with a price target of ₹6,000 per share, following a management meeting.
Nomura highlighted GE Vernova T&D’s strong high voltage direct current (HVDC) pipeline, with the recent $1.5 billion order taking the company’s estimated HVDC order book to around $2.2 billion.
The brokerage said management expects the company’s total addressable market excluding HVDC to expand to $8.5 billion by calendar year 2030 from $5.2 billion in calendar year 2025. This represents a compound annual growth rate of around 10%, driven by investments in grid modernisation, renewable energy and artificial intelligence data centres.
Export opportunities are also expected to expand, with management projecting an 18% CAGR in export opportunities between CY25 and CY30. The company’s FY26 export order inflow of around ₹1,200 crore is expected to grow by 10% to 15% year on year.
GE Vernova T&D is also expanding its manufacturing capacity. The company plans to invest around ₹1,000 crore across transformers, air insulated switchgear and gas insulated switchgear capacity.
According to Nomura, the company plans to increase transformer capacity by 50% and AIS and GIS capacity by 25% each by December 2028. It is also adding HVDC and VSC STATCOM valve lines by early 2027 and plans to build an AIS and GIS components plant by December 2026.
Nomura said the company’s strong order book provides healthy revenue visibility, although execution of HVDC projects is expected to be more back ended. HVDC projects typically have an execution period of 48 to 54 months, compared with 18 to 24 months for transformer projects.
Management has reiterated its guidance for EBITDA margins in the mid 20% range for FY27. While a higher share of HVDC orders could lead to some gross margin dilution, management expects to sustain EBITDA margins beyond FY27 through operating leverage.
Nomura said sustained demand and pricing power could support a stronger growth cycle for the broader GE Vernova business through 2030 to 2040. The brokerage expects GE Vernova T&D to benefit from the parent company’s strong order inflows, given its strategic importance to the group.