GE Vernova T&D India Upgraded to Buy After Major HVDC Order Boosts Earnings

Prabhudas Lilladher has lifted its earnings forecasts for GE Vernova T&D India and upgraded the stock to a “Buy” rating.

What triggered the upgrade?

The company won the Khavda‑South Olpad high‑voltage direct current (HVDC) project, a contract worth over Rs1 trillion. This win is expected to add about Rs6.8 per share to earnings in FY27 and Rs7.8 in FY28.

Key growth drivers

• More than Rs1 trillion of HVDC projects are expected to be awarded in India over the next 2‑3 years.
• Base orders for equipment such as STATCOMs are growing 10‑15% year‑on‑year, creating a Rs40 billion opportunity.
• A focused capex plan of roughly Rs10.6 billion and the parent’s “Asia for Asia” strategy aim to bring in about Rs25 billion of export orders in FY27.
• These factors should keep the EBITDA margin above 20% in the medium term.

Financial outlook

The firm now expects earnings per share (EPS) to rise by 14% for FY27 and 13% for FY28. The order book stands at around Rs131 billion. The stock trades at a forward P/E of 56.1× for FY27 and 45.5× for FY28.

Valuation and target price

Using a P/E multiple of 65× for FY27 earnings, Prabhudas Lilladher values the shares at about Rs4,005 each, up from the previous target of Rs3,531.

Takeaway

Strong HVDC positioning, a solid order backlog, and a clear focus on margin improvement suggest robust revenue and profit growth ahead.

Remember, this is just an analysis, not a prediction. Do your own research before making any investment decisions.