Wire · Echonomia Post
Brokerage firms such as InCred and Nomura have raised their price targets on GE Vernova T&D Ltd. after the company emerged as the lowest bidder for a major Power Grid project. The project involves designing and establishing a 6,000 MW, ±800kV HVDC terminal station with two terminals—one in Barmer II, Rajasthan, and another in South Kalamb, Maharashtra. The scope includes renewable power evacuation, though the exact order value remains undisclosed. The project is expected to span multiple years.
GE Vernova T&D’s share price has surged 8% in early trading, with analysts citing the order win as a significant catalyst. Nomura raised its price target to ₹6,000, calling the HVDC order a 'major catalyst' and projecting a 31% CAGR in PAT from FY 2026–2029. The company’s revenue estimates for FY 2028 and 2029 were also increased by 4% and 9%, respectively. Meanwhile, Citi cut its price target on Hitachi Energy to ₹42,000 and closed its 'positive catalyst watch' after GE Vernova secured the order, despite Hitachi’s higher local content share in LCC-based HVDC projects. GE Vernova’s shares are now trading 7.7% higher at ₹4,703.3, marking a 57% year-to-date gain.
Analysts prefer GE Vernova T&D over Hitachi Energy, citing its execution bandwidth and order-win momentum. The project’s total cost is estimated at over ₹25,000 crore, with HVDC equipment accounting for nearly 40% of the overall value. Revenue recognition for this order is expected from FY 2029, boosting GE Vernova’s EBITDA and EPS estimates by 25%.
Source: CNBC TV18
