- Jefferies upgrades Hitachi Energy's price target to Rs 43,145 with 20% upside
- Earnings estimates for FY27 and FY28 raised by 10% and 27% respectively by Jefferies
- Strong demand in power transmission and HVDC projects boosts growth outlook
Hitachi Energy is in focus on Wednesday after a major price target upgrade from Jefferies, in the wake of its fourth quarter earnings for the financial year ending March 2026. The brokerage firm has maintained a bullish call and sees 20% upside from Tuesday's closing price of Rs 35,995.
In its latest note, Jefferies has raised its earnings estimates sharply on Hitachi Energy, flagging an increasingly visible multi-year structural growth story.
The firm raised its FY27 and FY28 EPS estimates by 10% and 27%, respectively. This comes on the back of a robust demand trend across the power transmission and distribution sector.
Jefferies now estimates a 58% EPS CAR over FY26-28 for Hitachi Energy. The firm believes such a growth rate justifies the massive re-rating of the stock, with visibility on a 35%-plus CAGR continuing beyond FY28, thus adding further conviction to the long-term bull case.
On the demand side, Jefferies has witnessed strong industry trends, particularly with regard to HVDC - High Voltage Direct Current - projects, which are margin accretive and could contribute meaningfully to Hitachi Energy. The company has also announced additional capacity expenditures in order to meet the rising demand.
Two high-growth areas stand out in the thesis. Data centres represent an emerging demand driver for Hitachi Energy's power solutions, while exports add an international dimension to what has predominantly been a domestic T&D demand story.
Jefferies flagged the Data Centres and Exports segment as a high-growth area that should layer incremental revenue on top of the already strong domestic backdrop.
Keeping these factors in mind, Jefferies has maintained a 'buy' call on Hitachi Energy, with an upgraded target price of Rs 43,145.
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