Jefferies initiates protection on GE Vernova, bullish on 2 different energy transmission shares
Jefferies’ name: Maintain on GE Vernova, Purchase on Hitachi and Siemens
Jefferies has began protection on GE Vernova T&D India (GE Vernova) with a “Maintain” and a goal worth of Rs 6,000 per share, implying restricted upside from the present ranges and valuing the inventory at 65 occasions FY28 estimated earnings. In distinction, the brokerage has retained “Purchase” scores on Hitachi Power India and Siemens Power India, with goal costs of Rs 43,145 and Rs 4,500 per share, respectively, each implying round 17% upside.
“We retain Purchase on Hitachi Power (Hitachi) and Siemens Power (SE) given their robust 40%+ earnings CAGR on working leverage backed by robust income visibility. We provoke protection on GE Vernova T&D (GE) with a Maintain,” Jefferies stated.
Jefferies expects GE Vernova to ship about 35–36% EPS CAGR over FY26–29E, however sees even quicker revenue compounding in Hitachi and Siemens, which justifies increased or related multiples and a extra constructive score on these shares.
The home view is anchored in a robust and extended capex cycle in India’s energy transmission and distribution section, the place annual transmission venture awards have greater than doubled and are anticipated to maintain at elevated ranges.
Transmission venture bids have already jumped from an annual run price of about Rs 390–400 billion in FY24 to over Rs 800 billion from FY25 onwards, and administration commentary from Energy Grid and Adani Power suggests this pipeline may keep above Rs 800 billion by FY27–28 and doubtlessly cross Rs 1 trillion on a sustainable foundation.
The brokerage estimates a USD 100 billion‑plus transmission capex pipeline over FY27–36, translating into over Rs 14 trillion of nationwide transmission alternative when combining the Central Electrical energy Authority’s plan to combine 900 GW of non‑fossil capability by FY36 and the Brahmaputra basin HVDC growth. With solely a handful of certified excessive‑voltage tools suppliers and transformer manufacturing capability anticipated to rise 80–90% versus FY25 ranges—nonetheless lagging the demand trajectory—the brokerage believes “provide shortages ought to proceed and pricing ought to stay agency,” supporting margins for key OEMs.
Jefferies estimates that roughly 40% of India’s transmission spend is addressable to tools suppliers, pointing to a sizeable and lengthy‑period order funnel for names similar to GE Vernova, Hitachi Power, Siemens Power, and CG Energy.
In opposition to this backdrop of tight home manufacturing capability, rising HVDC depth and beneficial pricing, the brokerage is positioning traders in the direction of firms the place the mixture of order‑e book visibility, margin upside and valuation nonetheless affords significant danger‑reward.
