The conviction driving this sentiment is rooted in a massive, structural necessity: India is tasked with integrating 900 GW of renewable energy by FY36. Because the nation’s solar and wind resources are concentrated in states like Rajasthan and Gujarat—far removed from key demand centers—a colossal investment in high-voltage transmission infrastructure is non-negotiable.
What Is Contributing To The Bullish Power Infra Trend?
The global transformer market is grappling with a shortage projected to persist until 2028–29, allowing Indian manufacturers to secure premium pricing on exports.
The Central Electricity Authority (CEA) has unveiled a massive ₹7.9 lakh crore transmission plan.
High-Voltage Direct Current (HVDC) projects present a recurring ₹24,000 crore annual opportunity.
India now manufactures approximately 80% of global transmission and distribution (T&D) gear, while previously looming fears of Chinese competition have effectively faded due to protective domestic content regulations.
Which Are The Companies To Play The Power Infra Theme?
As the sector gains momentum, brokerages are closely monitoring four primary companies positioned to capture this transition:
Hitachi Energy India
As a dominant player in the HVDC space with a ~58% market share in India and a ₹4,000 crore capex plan, Hitachi is uniquely positioned to compound growth through grid investments.
Earlier this month, Brokerage firm Citi initiated coverage with a price target of ₹46,700, which is the highest on the street. Brokerages like Macquarie and JPMorgan also have bullish ratings on the stock with targets of ₹38,500 and ₹29,000 respectively.
GE Vernova T&D
The company stands as the only other major LCC+VSC HVDC player in India, with 33% of its revenue derived from exports. It has seen its order book triple between FY24 and FY26, alongside boasting the highest margins and export share in the peer group.
Citi has a target of ₹6,200 on the stock, followed by “outperform” and “overweight” ratings from Macquarie and JPMorgan respectively, with price targets of ₹5,470 and ₹4,300.
CG Power
The company offers a more diversified exposure across T&D, railways, motors, and the burgeoning semiconductor OSAT space. The company is scaling its capacity, targeting 1,10,000 MVA by the end of 2026.
Brokerages like Citi and Macquarie are betting on the stock with targets of ₹1,100 and ₹1,090 respectively.
Siemens Energy India
The company’s near-term growth potential is limited by the absence of LCC-HVDC offerings in India and due to slower growth in the power generation business.
Therefore, brokerages like Citi and JPMorgan have a “neutral” rating on the stock, while Macquarie has an “outperform” rating.
What Are The Key Risks To Power Infra Theme?
While the long-term infrastructure narrative remains compelling, analysts anticipate potential delays in HVDC ordering throughout FY27, and the nature of phased execution cycles may limit the immediate upside for these stocks in the near term.
Here’s how these companies stack up on the valuation front:
|
Valuation |
||
|
Company |
Current |
Historical Average |
|
Hitachi Energy |
217x |
120x |
|
CG power |
82x |
71.8x |
|
Ge Vernova T&D |
190x |
119x |
|
Siemens Energy |
66x |
60.5x |
