Hitachi Energy Shares Zoom Over 2,000% In Five Years — Should You Buy, Sell Or Hold?

Companies in the transmission and distribution sector have seen a rally over the last few years, driven by steady order inflows amid a transition in the sector. Hitachi Energy India Ltd., which was one of the standout performers in the last year, has continued to outperform the benchmarks. The multi-bagger stock has rallied over 2,000% in the last five years.

The scrip has delivered a return of 70% on a year-to-date basis, the five-year return of the stock stands at 2,199.65%.

Shares of Hitachi Energy had slipped to a low of Rs 837.05 in August 2020 before it saw a steady climb. The share price then rose to Rs 20,298 in May 2025, marking the high point in the five-year period.

The share price saw a slip after in January 2024, but has seen recovery since April 2025 and has been on the rise since then.

Hitachi Energy posted a 62% increase in net profit to Rs 183.9 crore for the quarter ended March 2025, driven by higher revenue. The company had posted a net profit of Rs 113.7 crore in the same period last year.

Its total income rose to Rs 1,921.85 crore from Rs 1,699.2 crore in the previous year’s quarter.

For fiscal 2025, net profit surged to Rs 383.98 crore, compared to Rs 163.78 crore in the previous financial year.

The total income increased to Rs 6,442.1 crore from Rs 5,246.78 crore a year ago. In the quarter ended March 31, 2025, its orders jumped 55.7% to Rs 2,190.8 crore from Rs 1,406.7 crore a year earlier.

Hitachi Energy is composed of four business units that are grid automation, grid integration, high voltage products and transformers.

As of March 31, 2025, the order backlog stood at Rs 19,245.9 crore, providing revenue visibility for the coming quarters.

The company has announced capital expenditure plan of Rs 2,000 crore to be spread over the next four to five years. This investment will be directed towards expanding its offerings across transmission and distribution, data centers, and railways.

Hitachi Energy also anticipates investments in green hydrogen and power transmission. It has maintained its guidance for double-digit margins by the end of the year and is co-bidding on several HVDC projects, expecting at least one to be finalised.

The analyst's take on the counter is upbeat, as seven out of nine analysts tracking the stock have a 'buy' call. Two others have a 'sell' rating, according to Bloomberg data.

Analysts at Nuvama, Goldman Sachs and Emkay, among others, have a 'buy' rating on the stock, while Motilal Oswal Securities and Equirus Securities have a 'hold' rating for the counter. The target price for the stock is set at Rs 16,787, implying a 13.2% potential downside.