GE Vernova T&D zooms 11% in trade; Antique terms it a 'good long-term buy'

Robust order backlog, strong balance sheet, superior earnings growth, high return ratios coupled with a large addressable market for its product portfolio, make GE Vernova a good investment: Antique

GE Vernova T&D India shares zoomed 11 per cent, logging an intra-day high at ₹3,250 per share on BSE. The buying on the counter came after the company bagged a multi-year contract from Adani Energy Solutions (AESL).

 

At 9:21 AM, GE Vernova T&D India’s share price was trading 9.6 per cent higher at ₹3,208.45  per share on BSE. In comparison, the BSE Sensex was up 0.53 per cent at 85,379.98. 

 

The company has a total market capitalisation of ₹82,262.63 crore. Its 52-week high was at ₹3,323.7, and its 52-week low was at ₹1,252.85. 

 

Under the contract, the company will design, supply, and establish a 2,500 MW, ±500 kV High Voltage Direct Current (HVDC) VSC Terminal Station. The project, which consists of two 1,250 MW units, is designed to facilitate the evacuation of renewable power from KPS 3 in Khavda to South Olpad.   CATCH STOCK MARKET UPDATES TODAY LIVE 

 

This multi-year project represents a significant domestic order for the company and does not involve any related-party transactions or promoter interests.

 

Antique Stock Broking estimates the overall project value at ₹12,000 crore, with the HVDC portion alone pegged at ₹4,000–₹5,000 crore, and an execution timeline spread across multiple years, ideally around four years.

 

The brokerage has maintained ‘Buy’ on GE Vernova for a target of ₹3,596 per share. “Robust order backlog, strong balance sheet, superior earnings growth, high return ratios coupled with a large addressable market for its product portfolio, make GE Vernova T&D a good investment in the long term,” Antique said. 

 

According to the brokerage, this order reinforces GE Vernova T&D's positioning in the HVDC segment.  ALSO READ | Why did Sudeep Pharma plunge 6% in trade today? Key details inside 

Last week, GE Vernova T&D also received an order from Power Grid Corporation of India for the refurbishment of the 2x500 MW HVDC Chandrapur line, which involved design, supply, and refurbishment of the line between the southern and northern parts of India, and upgrade of HVDC thyristor valves and HVDC control and protection, with execution timelines of three years. 

 

“The new HVDC orders will further bolster the already robust order book of ₹13,100 crore and will materially change the revenue as well earnings growth trajectory going ahead,” Antique said.  

GV T&D has developed a strong order book to ₹13,100 crore, up 33 per cent year-on-year (Y-o-Y) supported by strong order inflow momentum that it has witnessed, supported by domestic as well as overseas markets, according to the brokerage.   Disclaimer: View and outlook shared on the stock belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.