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.

GE Vernova T&D India Limited has secured a major contract from AESL Projects Limited for establishing critical renewable energy infrastructure. The contract, announced through a regulatory filing under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, involves the design and establishment of a 2500MW, 500kV HVDC VSC Terminal Station for renewable power evacuation from Khavda to South Olpad.

Contract Details

The awarded contract encompasses the design and establishment of a sophisticated power transmission system for renewable energy evacuation. The project specifications demonstrate the scale and technical complexity of this infrastructure development.

Technical Scope

The contract involves the design, supply, and execution of a High Voltage Direct Current (HVDC) Voltage Source Converter (VSC) Terminal Station. This advanced technology is crucial for efficient long-distance power transmission, particularly for renewable energy projects where power generation sites are often located far from consumption centers.

The 2500MW capacity represents a significant addition to India's power transmission infrastructure. The dual 1250MW configuration provides operational flexibility and redundancy for the renewable power evacuation system from the Khavda region to South Olpad.

Project Timeline and Execution

The contract is structured for execution over multiple years, reflecting the comprehensive nature of the project scope. The multi-year timeline allows for proper planning, design, procurement, and installation phases typical of large-scale power transmission infrastructure projects. This extended execution period ensures thorough implementation of the complex HVDC technology and infrastructure requirements.

Regulatory Compliance

GE Vernova T&D India Limited has confirmed that this contract does not involve any related party transactions and that promoter groups have no interest in the contracting entity. The award represents a standard commercial transaction with AESL Projects Limited, a domestic entity.

This contract award strengthens GE Vernova T&D India Limited's position in the renewable energy infrastructure sector and demonstrates the company's capability in handling large-scale HVDC transmission projects essential for India's clean energy transition.