GE Vernova T&D India shares have delivered exceptional performance, rising 47% year-to-date including a 31% gain over six months. This remarkable momentum has been driven by strong traction in the company's order pipeline and robust growth prospects in India's expanding power transmission sector.

Record Order Backlog Drives Growth

The company reported its highest-ever order backlog of ₹13,100 crore, representing over three times its revenue of ₹4,292 crore. This substantial order book provides strong revenue visibility and underpins the company's growth trajectory over the coming years.

Major Contract Wins Strengthen Position

GE Vernova T&D India has secured significant contracts that further bolster its order book. The company announced winning a contract from Adani Energy Solutions to supply high-voltage direct current (HVDC) technology for the 2.5-gigawatt Khavda-South Olpad renewable power transmission corridor in Gujarat. While the order value remains undisclosed, analysts estimate it to be between ₹7,500 crore and ₹10,000 crore, with execution spread over 4-5 years.

Additionally, the company secured another substantial order worth ₹1,230 crore from Power Grid Corporation of India for refurbishment of 2x 500 megawatt HVDC Chandrapur back-to-back link between northern and southern India.

Strong Financial Outlook and Expansion Plans

The company expects revenue to rise by over 35% year-on-year to ₹5,500-6,000 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin is projected to remain around mid-20%, supported by a 30-35% export mix.

To support future growth, GE Vernova T&D India announced capital expenditure of ₹800 crore in the September quarter, to be spread over the next 2-3 years. This investment will expand engineering and manufacturing capabilities, boosting transformer and reactor capacities at Vadodara and adding new production lines for bushings and air-core reactors at Hosur.

Analyst Outlook and Valuation

The strong performance has resulted in a higher trailing price-earnings multiple of 86 compared to peers, reflecting better expected growth prospects. However, analysts remain optimistic about the company's long-term potential. Nuvama Institutional Equities estimates a potential 20-30% upside to FY28-29 earnings estimates, setting a target price of ₹3,680. Other brokerages have set targets at ₹3,350 (Emkay Global) and ₹3,531 (PL Capital).

The management expects robust demand as India targets 500 GW of non-fossil fuel capacity and peak power demand is projected to rise by 80% by 2032. Shares of GE Vernova T&D India closed 0.20% higher at ₹3,078.00 on the BSE.

Nomura has initiated coverage on GE Vernova T&D with a Buy rating and a target price of ₹4,000, signaling the global brokerage firm's positive outlook on the electrical equipment manufacturer.

Brokerage Recommendation Details

The recommendation from Nomura represents a bullish stance on the company's prospects in the capital goods sector. The target price of ₹4,000 indicates the brokerage's assessment of the stock's potential value.

Company Profile

GE Vernova T&D operates in the capital goods sector, specifically focusing on electrical equipment manufacturing. The company is classified as a large-cap stock in the Indian equity markets, reflecting its significant market presence and established business operations.

Market Implications

The Buy rating from Nomura adds to the analyst coverage of the electrical equipment sector. Such recommendations typically reflect the brokerage's analysis of the company's fundamentals, market position, and growth prospects within the capital goods industry.