Why GE Vernova T&D India stock is a BUY: Companys financials, EPS estimates and valuation
Prabhudas Lilladher Capital has upgraded GE Vernova T&D India to a 'BUY' rating, setting a target price of Rs 4,005, indicating 27% upside. This positive outlook is fueled by strong prospects in HVDC projects, significant export opportunities, and robust base order growth. PL Capital forecasts increased EPS and sustained high EBITDA margins, positioning the power supply chain company as an attractive investment.
New Delhi: Brokerage firm Prabhudas Lilladher Capital (PL Capital) has advocated for GE Vernova T&D India. The firm has increased the rating of the stock from Accumulate to BUY and fixed its target price of Rs 4,005 apiece. Its market price (CMP) stood at Rs 3,163 at the time of writing this article on Wednesday. That means the brokerage has estimated a rise of about 27 percent. The brokerage believes that after the recent Khavra-South Olpad VSC HVDC project, the prospects of the company's transmission business have become very strong.
GE Vernova T&D India details on BSE (Dc 24, 2025)
- Previous Close: 3129.00
- Open: 3107.45
- High: 3201.00
- Low: 3107.45
- VWAP: 3,166.47
- 52 Wk High: 3,323.70
- 52 Wk Low: 1,252.85
- Upper Price Band: 3,754.80
- Lower Price Band: 2,503.20
- Price Band: 20%
- TTQ (Lakh): 0.13
- Turnover (Cr.): 4.23
- Mcap Full (Cr.): 80,984.96
- EPS (TTM): 35.93 / -(Standalone / Consolidated)
- CEPS (TTM)L: 37.72 / - (Standalone / Consolidated)
- PE: 88.03 / -(Standalone / Consolidated)
- ROE / PB: 66.83 / 58.83
- Face Value: 2.00
Considering this order, PL Capital has increased the EPS estimate of FY27 and FY28 by 14% and 13% respectively. According to the brokerage, this project can add an additional EPS of around Rs 6.8 in FY27 and Rs 7.8 in FY28. In conversation with the management, it was also revealed that India is expected to win the HVDC Pipeline Award worth about Rs 1 lakh crore (Rs 1.0 trillion) in the next 2-3 years, which is a big opportunity for the company.
Apart from HVDC, the brokerage also predicts 10-15% annual growth in base orders. This includes segments like STATCOM, which add an additional addressable market of about Rs 40 billion annually in the medium term. The company's Rs 10.6 billion Capex scheme and the parent company's "Asia for Asia” strategy are promoting localization, which is likely to lead to high-value export orders. Export orders worth around Rs 25 billion are expected by FY27.
The brokerage believes that due to a strong order book (Rs 131.1 billion), leadership in HVDC and a focus on margin improvement, the company's EBITDA margin may remain above 20%. Currently, the stock is trading at 56.1x and 45.5x P/E for FY27/28, while the brokerage has given a new target by valuing it at 65x PE of Sep'27E EPS.
Source: Groww
GE Vernova T&D India Limited is a power supply chain company. The company offers a comprehensive range of services and products such as power transformers, circuit breakers, gas insulated switchgear (GIS), instrument transformers, sub-station automation equipment, digital software solutions, turnkey solutions for sub-station engineering and construction, flexible AC transmission systems (FACTS), high voltage DC (HVDC) and maintenance support.
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