GE Vernova T&D shares jump 9%: Why brokerages are bullish?
📈 GE Vernova T&D India shares jumped 9% to settle at ₹4,750 after winning a major HVDC project bid.
🏗️ The company secured an L1 bidder status for a 6,000 MW, 800 kV HVDC terminal station connecting Barmer-II to South Kalamb.
💰 Nomura estimates the order value at approximately ₹13,000 crore, significantly boosting long-term revenue visibility.
📈 Analysts project a 31% compound annual growth rate in profit after tax between FY26 and FY29 following this win.
🔍 Citi raised its target price to ₹5,400 and expects the project to drive 25% upside to FY29 EBITDA estimates.
✅ The order validates GE Vernova T&D India's execution bandwidth and local-content share in LCC-based HVDC systems.
Bullish Signals
- Shares of GE Vernova T&D India surged 9% following the declaration as L1 bidder for a major ₹13,000 crore HVDC project.
- Nomura raised its target price to ₹6,000 and retained a Buy rating, citing the order as a landmark development strengthening long-term growth.
- The company is expected to deliver a 31% compound annual growth rate in profit after tax between FY26 and FY29 due to this new contract.
- Citi maintained its Buy rating with a ₹5,400 target, estimating the project will drive approximately 25% upside to FY29 EBITDA and EPS estimates.
- The win confirms GE Vernova T&D India's superior execution bandwidth and high local-content share compared to competitors like Hitachi Energy.
Full Analysis
Shares of GE Vernova T&D India surged approximately 9% on Tuesday, settling at ₹4,750 after hitting an intraday high of ₹4,793. This significant price jump followed the company being declared the L1 bidder by Power Grid Corporation of India for a major high-voltage direct current (HVDC) project.
The awarded contract involves the design and execution of a 6,000 MW, 800 kV HVDC line-commutated converter terminal station. This facility is critical for evacuating renewable power from the Barmer-II zone to South Kalamb, marking a pivotal win for the company's growth trajectory.
Major brokerages have responded positively to the order win with upgraded targets and maintained Buy ratings. Nomura raised its target price to ₹6,000, estimating the project could be worth around ₹13,000 crore and driving a 31% compound annual growth rate in profit after tax through FY29.
Citi also maintained its Buy rating with a target of ₹5,400, noting that revenue recognition is expected to begin in FY29. The brokerage anticipates this project could drive approximately 25% upside to previous EBITDA and EPS estimates for FY29, validating the company's execution capabilities.