JPMorgan is “overweight” on Hitachi Energy India, and GE Vernova T&D. Hitachi Energy India is among the best performing stocks in the broader markets so far this year.
The brokerage has a price target of ₹29,000 on Hitachi Energy, which implies an upside potential of 12% from current levels. Its target of ₹4,300 on GE Vernova T&D implies an upside potential of close to 16% from current levels.
Siemens Energy has also seen a coverage initiation from JPMorgan but with a “neutral” rating and a price target of ₹2,600, which implies a 4% downside potential from current levels.
JPMorgan’s note stated that India’s high-voltage power equipment makers are in the midst of a decadal upcycle as the grid keeps up with a step-change in renewables.
The brokerage has highlighted three factors why the set-up for these companies looks durable over the next three to four years.
First, India’s latest generation plan aims for 470 GW of solar + wind power capacity addition over the next decade.
Second, the rising HVDC adoption as the technology of choice for renewable integration. The plan lists HVDC projects to evacuate 80 GW of Renewable Energy by financial year 2036, implying potential orders between $14 billion to $15 billion over the next five to six years.
Lastly, exports extending the usual cycle as global order books continue to rise on renewables, grid upgrades, and AI driven load growth.
16 analysts have coverage on Hitachi Energy India, of which 13 have a “buy” rating on the stock, two say “hold” and one has a “sell” rating.
14 analysts have coverage on GE Vernova T&D, of which 12 have a “buy” rating and two have a “hold” recommendation. No analyst has a “sell” rating on the stock.
Shares of Hitachi Energy India have given up early gains on Thursday and are now trading little changed at ₹25,915. On the flip side, shares of GE Vernova T&D are also off opening highs, but are holding on to gains of close to 3% at ₹3,826.
