This small-cap stock has bounced back 80% from June low; zooms 3x in 1 year

Shares of GE Power India hit an over three-year high of Rs 483.15, zooming 18 per cent on the BSE in Thursday's intraday trade

Top small-cap stocks: Shares of GE Power India (GEPIL) hit an over three-year high of Rs 483.15, zooming 18 per cent on the BSE in Thursday's intraday trade, on the back of over three-fold jump in average trading volumes. The stock was trading at its highest level since September 2020. It had hit a record high of Rs 1,109 on December 6, 2007.

Till 02:58 PM, a combined 3.78 million shares, representing 5.6 per cent of total equity of the company, had changed hands on the NSE and BSE. In comparison, the BSE Sensex was up 0.11 per cent at 80,062.

With today's rally, the stock of the small-cap firm has bounced back 80 per cent from its June 4 low of Rs 268.  In the past one year, it has zoomed 213 per cent, as against 22.3 per cent rally in the benchmark index.

GEPIL is one of the leading players in the Indian power generation equipment market. With Steam Power contributing to the majority of the business, GEPIL also houses Hydro and Gas business projects.

With electricity demand rising faster than renewable capacity addition, coal-powered plants are expected to remain in operation for at least next two decades. However, to align with the energy efficiency goals, it's crucial to utilise technologies that aid in reducing greenhouse gas emissions.

A significant expansion of carbon removal technologies and measures to control sulfur emissions, such as direct air capture (DAC), bioenergy with carbon capture and storage (CCS), and flue gas desulfurisation (FGD) will be necessary to progress on the road to achieve the net-zero emission targets set by different countries.

GEPIL operates in the FGD technology sector for thermal power plants and also provides services, including core servicing and upgrades.

The estimated market size for FGD is valued at Rs 60,000 crore, with around 97 GW of FGD yet to be ordered, as per the current 2026 regulatory deadline. Moreover, the services portfolio is also witnessing robust growth as plants with old technology are revived to meet the growing electricity demand, GEPIL said in its FY24 annual report.

India is on the brink of a significant energy transition, with Pumped Hydro Storage Projects (PSPs) gaining substantial attention. The Government has set an ambitious target to expand PSP capacity from the current 4.7 GW to 55 GW by 2031-32. In line with India's commitments under the COP Paris Agreement, a proactive stance on hydropower development is being adopted to accelerate this progress.

GEPIL said the company will selectively participate in margin and cash accretive projects in this segment in partnership with other GE Vernova entities. The company offers project management and engineering capabilities and relies on GE Vernova for critical design, technology like turbine, generators, pumped storage plant equipment and complete electrical balance of the plant.

With the accelerating pace of energy transition and increasing investments from both public and private sector companies, the preference of GEPIL would be to deal with private independent power producers (IPPs) owing to the risk and reward ratio, the company said.