The company’s revenue grew by 69% for the quarter to ₹2,493 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter more than doubled in value, growing by 135% year-on-year to ₹363 crore.
EBITDA margin also expanded to 14.5% from 10.4% last year.
Hitachi Energy India now has its highest ever order backlog at ₹32,222 crore, registering a growth of 10% from last year. The company also secured its first BESS order for 165 MW / 330 MWh BESS project during the quarter.
Excluding the ₹1,700 crore HVDC order, the order inflow was up 26% year-on-year to ₹5,096 crore, led by growth in industrials, data center and renewable sector.
Where Are Shares of Hitachi Energy Headed?
Hitachi Energy shares have received multiple upgrades from analysts who track it after its June quarter results.
Axis Capital has upgraded the stock to “Add” from its earlier rating of “Reduce” and raised its price target to ₹35,159 from ₹32,470 earlier.
PL has also upgraded the stock to “hold” from “reduce” and raised its price target to ₹34,026 from ₹30,768 earlier.
ICICI Securities has upgraded the stock to “buy” and raised its price target to ₹40,000 from ₹37,800 earlier.
Macquarie has maintained its “outperform” rating on Hitachi Energy with a price target of ₹38,500. The brokerage said it remains positive on the grid expansion spending in India with the company being a key beneficiary.
Citi has a price target of ₹46,700 on Hitachi Energy India, which is among the highest on the street for the stock.
It has cited base order inflow growth, margin trajectory in new segments, commissioning of upcoming capacity and HVDC order wins among the key things to monitor going forward.
Nomura has initiated coverage on Hitachi Energy India with a “buy” rating and a price target of ₹40,030. It said that a confluence of multiple structural themes results in robust growth prospects for the company.
The brokerage said that Hitachi Energy India could benefit from several key industry tailwinds, such as lifecycle service orders for Grid Automation, transport infra expansion, multi-fold growth in data centers, energy storage solutions, and the target of ordering one HVDC project per year, to enable grid integration.
“As a leader in HVDC technology, co is well positioned to benefit from opportunities arising from upgrades to maturing HVDC stations over longer term,” Nomura said.
20 analysts have coverage on Hitachi Energy India, of which 12 have a “buy” rating, five have a “hold” rating and three have a “sell” recommendation on the stock.
Shares of Hitachi Energy India are now trading 10% higher at ₹35,840. The stock has nearly doubled in value so far this year.
