Hitachi Energy India share price today
Hitachi Energy India shares price scaled a fresh high in Thursday's session as IDBI Capital initiated coverage on the stock with a 'Buy' rating and 15 per cent upside projection. The stock rose as much as 4.2 per cent to a new high of ₹31,765 on the National Stock Exchange (NSE) in the intraday trade.
So far today, Hitachi Energy India's 0.14 million shares have changed hands on NSE. As of 2:14 PM, the stock was trading 3.35 per cent higher at ₹31,360 as compared to a 0.68 per cent decline in the Nifty50 index.
The stock hit a 52-week low of ₹13,353 on April 22, 2025. Since then, Hitachi Energy India's share price has jumped 127 per cent (till Wednesday).
Why did Hitachi Energy India share price rise today?
Hitachi Energy India share price experienced buying interest in Thursday's session as IDBI Capital started coverage with a bullish view. It gave a target price of ₹35,001 per share, which implies 15.4 per cent upside from Wednesday's close price.
IDBI Capital believes that Hitachi Energy India is a potent play amid a growing theme of power transmission in India. The company's strong growth will extend beyond the financial year 2028 as the high-voltage direct current (HVDC) theme sustains.
Here's IDBI Capital's detailed view on Hitachi Energy India
Order traction to sustain in medium term
Hitachi Energy has secured more than ₹20,000-crore worth of orders in he HVDC segment over the past few years, underlining the company's technological and execution prowess. It remains the undisputed market leader in HVDC projects within India, having 48 per cent share of the 33.5 Gigawatt (Gw) operational HVDC capacity. Notably, the government aims to scale the current HVDC operational capacity to 66.75 Gw in FY32. For this purpose, 8-9 projects are being planned at a total cost of ~ ₹1.9 trillion till FY32. Going beyond FY32, additional 6-7 projects are being planned with over ₹1 trillion investment. IDBI Capital, thus, expects Hitachi Energy India to secure one HVDC project each in the current financial year and in the financial year 2028, providing a strong revenue visibility over the medium term. "We expect domestic (ex-HVDC) revenue to grow at a steady pace with exports growing at a faster pace with increased sourcing by the parent entity. With Hitachi winning more orders, strong growth will extend way beyond FY28 as the HVDC theme is here to stay," it said.
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Capex to support expansion & localisation
Hitachi Energy India raised ₹2,500 crore through QIP in November, 2024. From the proceeds, the company has allocated ₹2,000 crore for capex, which will likely be used for expansion plans, including capacity augmentation in traction transformers, power transformers, dry-type transformers, HVDC components, and network control solutions.
Hitachi Energy India has already expanded its operations in Chennai and Bengaluru, which reflects that the company expects strong demand for power equipment. Hence, the capex will support localisation efforts as well as build capacity for leveraging the exports value chain, the brokerage said.
Revenue contribution from HVDC projects may rise
The revenue recognition from HVDC segment may increase rapidly in the current and the next financial years as Hitachi Energy has already bagged two large projects — Khavda-Nagpur and Bhadla-Fatehpur of 6 gigawatts, each in the financial year 2025 and 2026.
The brokerage expects revenue, Ebitda, and PAT to grow at robust CAGR of 36 per cent, 67 per cent, and 76 per cent, respectively, over FY25 to FY28.
Although, the valuations are undeniably rich, the long runway HVDC segment growth, the size of the opportunity, the limited number of players and robust industry tailwinds make it a structurally strong investment theme, the brokerage said.
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(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)