GE Vernova T&D India share hits record high as Nomura ups target to ₹3,350

Nomura on GE Vernova T&D India: Japan-based brokerage firm Nomura has lifted its target price on engineering services company, GE Vernova T&D India (GVTD), to ₹3,350 from ₹2,970 earlier, while reiterating its ‘Buy’ rating on the stock. 

 

Following the upgrade, GE Vernova T&D India share price rose up to 1.84 per cent to hit a fresh all-time high (record high) of ₹3,038.90 per share. At 9:35 AM, the stock was trading 1.06 per cent higher at ₹3,015.55 per share. In comparison, BSE Sensex was trading 0.38 per cent lower at 82,694.67 levels.

 

The brokerage cited a combination of strong domestic demand, rising export opportunities, enhanced capacity, and profitability focus as the key drivers for the upgrade.

 

Nomura analysts raised their earnings per share (EPS) estimates by 7-8 per cent over FY25-28F, reflecting expectations of stronger order inflows and improved margins. “We now expect GVTD’s earnings CAGR at 37 per cent over FY25-28F, led by recurring export orders, rising localisation and better cost discipline,” said Umesh Raut and Aritra Banerjee of Nomura in a note dated September 18.

 

Domestic tailwinds remain strong

 

The management team, during recent investor meetings in Mumbai, projected a robust outlook for India’s power transmission market. Excluding High Voltage Direct Current (HVDC), the market opportunity is pegged at ₹2.7 trillion between 2025 and 2030. For HVDC specifically, the opportunity is seen at ₹1.8 trillion, with two large orders expected in FY26 and 1-2 projects annually over the next 5-6 years.

 

GVTD expects its served annual domestic market to reach ₹0.9 trillion by 2030, marking a 3.4x jump from 2022 levels.

 

Exports: The big kicker

 

Alongside domestic growth, GVTD is betting big on exports, analysts noted. The company has already booked a base export order inflow of ₹1,000 crore, but management sees additional opportunities worth ₹2,000-3,000 crore from its parent company, as demand for HVDC systems accelerates in the EU and Middle East. “Our Indian factories are being qualified for the US market, which could open up significant upside,” management highlighted.

 

A board resolution has already been approved for related-party export orders worth ₹2,950 crore in FY26, underscoring the visibility of this pipeline.

 

Capacity expansion & profitability

 

GVTD has lined up ₹250 crore in capex, of which ₹110 crore will go into de-bottlenecking current facilities, while the rest will fund new HVDC and STATCOM lines. This, management said, will drive localisation, boost asset turns (to 7-8x excluding project revenues), and lift profitability.

 

Nomura, factoring in these developments, raised its total order inflow estimate from ₹34,700 crore to ₹44,400 crore for FY25-28F. “GVTD’s disciplined bidding, lean cost structure, and capacity expansion will help sustain profitable growth,” the brokerage said.

 

At the revised target price of ₹3,350, Nomura values GVTD at 60x September 2027F EPS. The stock currently trades at 59x Mar’27 EPS.