Waaree Energies, Premier Energy, Suzlon Energies, BHEL Rated New 'Buy' At UBS — Check Target Price

UBS has initiated coverage on multiple industrial and infrastructure power Original Equipment Manufacturers with a buy rating. The brokerage believes that OEMs are expected to see significant growth given UBS sees profits will increase 3.7 times from FY20-25 to FY25-30 and established leaders will see a 45% Compound Annual Growth Rate in profits.

The report suggests that there is room for creating value for stakeholders, and the advantage lies with existing market leaders.

• Initiate Buy with target price to Rs 4,400

• Backward integration and scale provide edge

• Capacity-led earnings acceleration underway

• Highly rewarding transition from scale to integration

• Robust 44% FY25-28E Ebitda CAGR, benefitting from multiple tailwinds

• Long-term integrated capacity in focus

• Initiate Buy with target price to Rs 1,340

• Operational robustness in a high-growth sector

• Ahead of peers in integrated expansion

• Operational robustness, execution and capital allocation an edge over peers

• Robust earnings growth and cash flow; upside to consensus feasible

• Initiate Buy with target price to Rs 78

• Competitively set to ride a profitable upcycle

• Sector tailwinds and competitive edge may lead earnings growth

• Multiple growth levers; around 3 times growth in wind energy OEM profit pool

• Order book/execution improving; HDD earnings, stronger balance sheet

• Initiate Buy with target price to Rs 340

• Thermal reviving; remunerative growth ahead

• Rising thermal orders; net profit to rise 8 times by FY28E

• Thermal power still relevant amid renewable transition

• Increasing capacity utilisation/healthy GM; upside risk to consensus estimates

• Concerns on Thermal power overshadowing BHEL P&L potential

• Maintain Buy; Hike target price to Rs 5,100 from Rs 4,100

• Slow and steady turnaround

• Solid growth appetite with stronger competitive edge

• Core products seeing traction; differentiation and growth to support margins

• Set for a turnaround and strong growth