Powerica Ltd: Strong Growth Prospects in DG Market

Company Overview

Powerica Ltd, founded in 1984, is an integrated power solutions provider specializing in diesel generator sets (DG sets) for primary and standby power. The company operates in the medium speed large generator (MSLG) segment through a partnership with HD Hyundai Heavy Industries and has OEM ties with Cummins India.

Business Segments

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Powerica manufactures generator sets ranging from 7.5 kVA to 10,000 kVA across its Bengaluru, Silvassa, and Khopoli plants. The company has diversified into renewables with 330.8 MW of wind assets in Gujarat and offers emission control solutions through its associate, Platino Automotive.

Market Outlook

The DG market in India has grown at a 17% CAGR over the past two years, reaching ₹14,449cr in FY25, driven by infrastructure development, telecom expansion, industrial growth, and data centers. The market is expected to grow at a 10% CAGR to ₹23,803cr by FY30.

Valuation and Outlook

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With a healthy ROE of 17.5% and an improved D/E ratio, Powerica's balance sheet is well-positioned to support project execution in the wind sector. We assign a Subscribe rating for a long-term investment horizon.