Hitachi Energy India Ltd. share price target

Hitachi Energy India is a potent play on the strong and growing theme of power transmission in India and across the world. We like the company on the back of (1) Leadership and Rich Proficiency in HVDC Project execution (2) Strong demand drivers and tailwinds for base business and (3) Robust HVDC Pipeline. Hitachi Energy is benefitting from strong demand from end user industries such as utilities, data centres, renewables and railways. Hitachi has already bagged two mega HVDC projects namely Khavda-Nagpur and Bhadla-Fatehpur of 6GW each in FY25 and FY26 respectively which will see increasing revenue...

POWERIND: At the forefront of HVDC ........................................................................................................................................................................................................................................... 5 India's power buildout to drive huge T&D capex ......................................................................................................................................................................................................................... 9 Energy transition led capacity addition attracts capex of ~Rs9.15trn in T&D industry ............................................................................................................................................ 9 Transformers: Crucial piece of the T&D puzzle ............................................................................................................................................................................................................................ 9 Investment Rationale.............................................................................................................................................................................................................................................................................. 12 HVDC Future of High-Efficiency Energy Transmission ..................................................................................................................................................................................................... 12 Seizing the future: ~Rs434bn opportunity for POWERIND over next 3 years from planned HVDC projects with total cost of ~Rs1.0trn ............................ 12 Consolidated HVDC market with steep entry barriers favors POWERIND ............................................................................................................................................................. 13...

Order inflow grew 13.6% YoY to Rs. 2,217.10cr, due to a 16% growth in the railway and metro segment, 40% in the renewables (wind and solar) segment and 10% in the industries segment. However, order inflows declined 43% in the transmission...

Hitachi Energy’s 2QFY26 results beat our estimates on the back of a sharp recovery in EBITDA margins and higher other income. Order inflow was healthy for the quarter, and the bid pipeline also remains strong for the company.

Hitachi's revenue grew during the quarter, driven by efficient order execution and enhanced operational efficiencies. The company experienced a notable influx of new orders, resulting in a strong order backlog for the quarter. This indicates the company has a healthy pipeline, providing better visibility of future performance. The outlook for the sector appears promising, with the government increasing expenditure on renewable energy and implementing favourable policies. These are also expected to drive the company's performance going forward. The company strives to capitalise on emerging opportunities in Data Centers, Services, Exports,...

Hitachi Energy’s 1QFY26 revenue and EBITDA margin came in below our estimates, whereas PAT beat our estimates on the back of higher other income.

Orders from the renewables segment rose a sharp 386% YoY, followed by the transmission segment (91% YoY) and railways and metro (24% YoY). However, orders from data center and industry fell 56% and 33% YoY, respectively, with the management mentioning that this was seasonal. Hitachi Energy has delivered strong financial results, with notable growth in both revenue and profitability. The momentum is expected to continue, driven by the *over or under performance to benchmark index company's strategic positioning in high-growth areas such as HVDC projects, data...

Hitachi reported operating margin of 12.7% (+190bps), ahead of consensus expectations in Q4FY25. The margin was 7% in FY24. It has also guided for double-digit margins in FY26, allaying the street concerns.

Hitachi Energy’s 4QFY25 revenue came in below our estimates, whereas PAT beat our expectations on the back of better margins and higher other income. Order inflow was healthy for the quarter, while FY25 inflow was boosted by HVDC order wins.

Hitachi Energy’s 1QFY25 result came in significantly below our estimates due to a steep decline in margin. The company reported 28%YoY growth in revenue.

POWERIND: In-line quarter but valuations overdone; cut to SELL. FY25 Budget Preview: Focus to remain on consolidation. KMB: NIM intact QoQ; higher provisions dull profits. AXSB: Profits subdued despite strong business growth. HAVL: Slow quarter but summer could bring cheer; maintain BUY. KEII: Decent quarter; maintain HOLD. JKCE: Healthy performance but priced in. GLS: Strong margins make up for subdued revenue growth

Q1 EBITDA margin at just 3.2% as supply chain constraints hampered profitability; chip shortage guided to recede gradually

Q4 sequentially stronger as supply chain constraints eased; chip shortage guided to recede fully in next two quarters

POWERIND: Chip shortage takes a toll. DALBHARA: Strong quarter; capacity addition on track