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Target: ₹5,600
CMP: ₹4,633.35
Hitachi Energy India Ltd (HEIL) offers engineering, products, projects, and services for electricity transmission and related activities in India and internationally.
Aggressive capacity addition along with overhaul of existing system a big opportunity for companies like Hitachi Energy. Around 280 to 300 GW of additional power generation capacity to come in next 5/6 years. In continuance of our Power Sector theme, we initiate coverage on Hitachi Energy Ltd (erstwhile ABB Power Products and Systems India) with a Buy rating.
- Also read: Broker’s call: Sanofi (Buy)
HEIL, a key player in the power and energy sector, stands poised to capitalise on the burgeoning opportunities within the dynamic Indian market. The calculated figures underscore the immense potential for the company to play a pivotal role in the nation’s journey towards a greener and more robust energy infrastructure. India’s plan to achieve 500 GW of renewal energy production capacity is likely to entail an estimated expenditure of around ₹2.44-lakh crore as per study of the Central Electricity Authority (CEA).
Valuing the company at a PER of 50xFY’26, which is a discount of 20 per cent to its peers and at a PEG ratio of 0.74x(FY’26e); per share target price comes at ₹5,700. The upside is expected over next 2 years.
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