The Hitachi Energy India share price surged over 12% to a high of Rs 32,070 in early trade on Friday, November 13. Hitachi’s shares are in focus as its revenue for the September quarter surged and management pointed to further growth.
Several brokerages have bullish outlook on the stock, and said the recent correction provides an opportunity to enter. Global investment bank Jefferies retained its ‘Buy’ call and projected an upside of around 48%. Motilal Oswal upgraded the stock to ‘Buy’.
The company on Thursday reported a net profit of Rs 318.5 crore for the September quarter, up 21% year-on-year (YoY). Hitachi’s revenue surged around 64% to Rs 2,996.5 crore for the quarter.
The surge in revenue was due to a sustained focus on operational efficiency, ensuring timely order execution. “…we anticipate these underlying opportunities and have invested in new infrastructure and are strengthening our existing capabilities. These efforts are reflected in our Q2 FY27 results,” said N Venu, Managing Director & CEO of Hitachi Energy India.
The global investment bank maintained its ‘Buy’ rating on the stock, and has a price target of Rs 45,790 apiece. This implies an upside of 48% from the current price of Rs 30,880.
Hitachi’s September quarter EBITDA was 6% higher than Jefferies’ expectations. The company’s management said that they have visibility till 2035, driven by robust demand and a strong pipeline of opportunities from renewable energy additions, grid modernisation, and transmission expansion.
“Further, management highlighted that electricity demand from India data centers could reach 17 GW by 2031-32 and added that they have launched pre-engineered grid-to-rack solutions which can significantly reduce the time required to power data centers. Renewable energy (RE), data centers, and EV adoption continue to drive the transmission opportunity pipeline,” Jefferies said.
The global investment bank highlighted that cost overruns from high voltage direct current (HVDC) project execution may delay margin accretion, which is a key downside risk to its outlook.
Motilal Oswal upgraded Hitachi Energy to ‘Buy’ from ‘Neutral’ and has a target price of Rs 35,800 apiece. This implies an upside of 16% from the current price.
The brokerage expects revenue growth to remain strong as HVDC project execution is ramping up, and a strong base and export orders can offset any weakness in new HVDC orders. It said operating leverage and a higher share of export and services will offset lower gross margin in HVDC projects.
The stock has corrected 26% from this year’s high and offers a decent upside from current levels. “Data center-related export orders are currently being secured across Southeast Asia and other Asia-Pacific markets, while the company is also seeing opportunities in the US and other geographies for its power-quality products. We expect exports to gain share in the order mix, supported by stronger global demand and increasing utilization of India’s manufacturing base,” Motilal Oswal said.
Ambit Capital retained its ‘Buy’ rating on the stock, while maintaining a price target of Rs 33,000 apiece. This implies an upside of 7% from the current price.
Hitachi Energy remains well-placed to capture sustained growth in the power transmission and distribution market, supported by its wide portfolio across transformers, HVDC, grid automation, BESS and data centres.
“Strong order momentum across renewables, utilities and industrials, along with 4-5 HVDC projects expected over the next 12-24 months, provides healthy revenue visibility. The emergence of 1,150kV projects offers an additional growth avenue,” the brokerage said.
While gross margins remain under pressure from product mix and elevated input costs, management expects them to normalise towards FY26 levels as exports and services scale up. Ambit believes the recent correction in the stock offers an attractive entry point, driven by a strong execution pipeline, expanding capabilities and multiple growth avenues.
The stock has corrected sharply from this year’s peak and offers a good entry point. Brokerages remain positive on the stock, driven by a robust order pipeline and growing demand for power T&D. Margins are also expected to normalise soon.