Hitachi Energy India (POWERIND) Research Report

Overview

We initiate coverage on Hitachi Energy India (POWERIND) with a 'Hold' rating, driven by the company's strong growth prospects. Our analysis highlights Rs434 billion in addressable opportunity over the next 3 years in HVDC technology, complemented by an Rs1 trillion+ energy-transition-led addressable market opportunity.

Growth Drivers

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1. HVDC Technology: POWERIND is a leading player in HVDC technology, positioning the company for strong growth.
2. Energy Transition: The company benefits from the Rs1 trillion+ energy-transition-led addressable market opportunity.
3. High-Growth Industries: Increasing demand from industries such as data centers drives growth.
4. Global Parentage: POWERIND's strong global parentage provides a competitive edge.
5. Margin Expansion: Improving share of services and exports drives margin expansion.

Financial Projections

We estimate 34.3% revenue CAGR and 67.5% adj. PAT CAGR over FY25-28E, with 712bps EBITDA margin expansion led by operating leverage.

Valuation

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The stock is trading at a P/E of 79.7x/ 57.8x on the earnings of FY27/28E. We initiate coverage with a TP of Rs26,108, valuing the company at a P/E of 60x Mar'28E.

Recommendation

We initiate coverage on POWERIND with a 'Hold' rating.