Brokerage JPMorgan has initiated coverage on India's power equipment space with a bullish stance, citing a decadal upcycle driven by renewable-led grid expansion, rising electrification and global demand tailwinds. The brokerage has initiated Overweight on Hitachi Energy India with a target price of Rs 29,000 and on GE Vernova with a target price of Rs 4,300. Siemens Energy India has been initiated at Neutral with a target price of Rs 2,600.
JPMorgan believes India's high-voltage (HV) power equipment makers are entering a multi-year growth phase, as the grid scales up to support a sharp increase in renewable capacity.
India's generation roadmap, which targets 470GW of solar and wind additions over the next decade, is expected to significantly drive demand for transmission infrastructure. This, in turn, creates strong visibility for HV equipment players over the next 3-4 years.
A major theme underpinning the sector is the rising adoption of high-voltage direct current (HVDC) technology, increasingly seen as the preferred solution for integrating renewable energy into the grid. Large-scale HVDC projects aimed at evacuating renewable power are expected to generate multi-billion-dollar order opportunities, strengthening order books for domestic players.
Exports Add Another Growth Lever
Beyond domestic demand, JPMorgan highlights that global order inflows remain robust, supported by renewable investments, grid upgrades and rising electricity demand from AI-driven data centres. Indian manufacturers, with improving capabilities and cost advantages, are increasingly positioning themselves as global suppliers, extending the growth cycle beyond the domestic opportunity.
The brokerage notes that an oligopolistic market structure, especially in HVDC, along with operating leverage and export growth, could support margin expansion ahead of expectations.
However, risks remain around execution delays, supply-chain disruptions and potential pauses in ordering cycles. Any slowdown in HVDC project approvals or near-term demand softness could weigh on sentiment, even as the longer-term outlook remains intact.
Samir Arora of Helios Capital also said he has bought power equipment stocks, prefers to avoid companies where the government is a dominant customer, and remains constructive on defence stocks, especially those with shorter order cycles.
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