GE Vernova gets new 'Add' from YES Securities; check target price here

YES Securities forecasts that GE Vernova's revenues will more than double by FY28, supported by strong execution and sustained ordering momentum

YES Securities initiated coverage on GE Vernova T&D India Ltd. with an 'Add' rating and a target price of ₹3,200, citing strong sector tailwinds, a robust order pipeline and expectations of over 30 per cent sales CAGR between financial year 2025-28.

 

The brokerage said the company is positioned to benefit from a sharp rise in energy installations, which will require accelerated expansion of India’s transmission network. The government plans to scale installed power capacity to 900 Gigawatt (Gw) by 2032, implying the addition of about 400 Gw over the next seven years.

 

YES Securities noted that GE Vernova has an order book of ₹13,100 crore, offering revenue visibility for the next two years. Orders worth ₹9,500-10,000 crore are scheduled for execution over the next two years, with the remaining ₹3,000-3,500 crore to be delivered over the subsequent three to five years. Exports account for roughly 30 per cent of the order book.

 

The brokerage said the global power transmission and distribution market is set for a “once-in-half-a-century opportunity”, with the market projected to double to $175 billion by 2030 from $80 billion in 2023 due to rapid network expansion and upgrades.

 

GE Vernova also expects India’s domestic electrification market to double to $25 billion in 2025-27, compared with $12.6 billion in 2022-24, and to remain at similar levels in 2028-30.

 

YES Securities forecasts that GE Vernova's revenues will more than double by FY28, supported by strong execution of the existing order book and sustained ordering momentum in the T&D segment. Ebitda margins are expected to expand, aided by better gross margins from higher exports and operating leverage. It also sees significant growth opportunities in Europe and the Middle East.

 

The brokerage valued the stock at around 50 times FY28 earnings to arrive at its target price of ₹3,200, citing improving financial performance.

GE Vernova stock price movement

The heavy electrical equipment major's stock rose as much as 2.6 per cent during the day to ₹2,989.8 per share, the biggest intraday rise since December 9 this year. The stock pared gains to trade 1 per cent higher at ₹2,943.5 apiece, compared to a 0.02 per cent decline in Nifty 50 as of 12:11 PM. 

 

Shares of the company rose for the second straight session on Wednesday. The counter has risen 41 per cent this year, compared to a 9.5 per cent advance in the benchmark Nifty 50. GE Vernova has a total market capitalisation of ₹75,321.21 crore.  ============

 

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