GE Vernova T&D FY29 earnings estimates could rise 15% after Power Grid order: PL Capital
📈 PL Capital upgrades GE Vernova to Buy with a ₹6,000 target price following a major Power Grid order win.
💰 The new contract valued at ₹25,000 crore is expected to boost FY29 earnings estimates by 15%.
📚 Execution of the order over five years will expand GE Vernova's order book by nearly 40% to over ₹30,000 crore.
🔮 The win provides strong revenue visibility for GE Vernova extending through FY32 and FY33.
⚡ The contract secures a significant share of the high-voltage direct current (HVDC) transmission opportunity in India.
🏆 GE Vernova emerged as the winner against competitor Hitachi Energy India in this binary outcome event.
Bullish Signals
- PL Capital upgrades GE Vernova stock to Buy with a target price of ₹6,000 following a major Power Grid order win.
- The new ₹25,000 crore transmission order is expected to increase FY29 earnings estimates by 15%.
- Winning the binary outcome against Hitachi expands GE Vernova's order book by nearly 40% to over ₹30,000 crore.
- The contract execution timeline provides strong revenue visibility for GE Vernova through FY32 and FY33.
Full Analysis
PL Capital Group has upgraded GE Vernova stock to a Buy rating with a target price of ₹6,000 following the company's win of a major transmission order from Power Grid Corporation of India. The Vice President of Institutional Research at PL Capital, Amit Anwani, estimates that this significant contract could increase GE Vernova T&D's earnings estimates for fiscal year 2028-29 (FY29) by approximately 15%.
The awarded order is valued at roughly ₹25,000 crore and is scheduled to be executed over the next five years. This development is expected to boost GE Vernova's order book from a range of ₹21,000-22,000 crore to over ₹30,000 crore, representing an increase of nearly 40%. Consequently, the company now enjoys strong revenue visibility extending through fiscal years 2031-32 and 2032-33.
The transmission order was a binary outcome against competitor Hitachi Energy India, which GE Vernova successfully secured. While this win may cause near-term negative sentiment regarding Hitachi, analysts believe it will not materially impact Hitachi's long-term growth story driven by its existing orders and expansion in areas like data centers. The broader high-voltage direct current (HVDC) transmission opportunity remains robust for both companies.