Nuvama Raises Hitachi Energy Stock Target to Rs 26,400 Amid Strong T&D Capex Outlook
Nuvama has raised its target price for Hitachi Energy to Rs 26,400, citing a robust transmission and distribution (T&D) capital expenditure outlook. The brokerage expects this cycle to remain strong beyond FY32, driven by solid domestic and export demand. Management projects sustainable EBITDA margins with potential growth from operating leverage and localization by FY27-28. Key growth factors include data centers, railway demand, and an expanding HVDC pipeline, with additional EPS growth anticipated from a potential HVDC order within the next 12-18 months.
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Nuvama has increased its target price for Hitachi Energy to Rs 26,400, driven by a favorable outlook for transmission and distribution (T&D) capital expenditures. The capex cycle is expected to remain strong beyond FY32, supported by solid domestic and export demand.
Management forecasts sustainable EBITDA margins, with potential for growth from operational efficiencies and localization through FY27-28. Key drivers include data centers, which represent about 15% of the market, railway demand exceeding 15-18 million, and an expanding high-voltage direct current (HVDC) pipeline. Nuvama anticipates that another HVDC order in the next 12-18 months could enhance earnings per share from FY29.
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