Article

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.