Hitachi Energy India Eyes Growth with Record Backlog

Hitachi Energy India's stock experienced a significant uplift after the company reported robust financial results for the June quarter. Revenue saw a substantial increase of 69%, reaching ₹2,493 crore, while Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) more than doubled, growing by 135% year-on-year to ₹363 crore. This performance led to an expansion in EBITDA margin to 14.5% from 10.4% in the previous year.

The company announced a record order backlog of ₹32,222 crore, marking a 10% growth from the prior year. Key order inflows, excluding a ₹1,700 crore HVDC order, were up 26% year-on-year, driven by strong demand in industrial, data center, and renewable sectors. Hitachi Energy India also secured its first BESS order for a 165 MW project.

In response to these positive results, numerous analysts have upgraded their ratings and price targets for Hitachi Energy India. Several brokerages, including Axis Capital, PL, ICICI Securities, Macquarie, Citi, and Nomura, have issued 'Add', 'Hold', 'Buy', or 'Outperform' ratings, with price targets ranging up to ₹46,700. Analysts are optimistic about the company's prospects, particularly its role in India's grid expansion and the growing demand for energy storage solutions and HVDC technology.

With 20 analysts covering the stock, the majority recommend buying. Hitachi Energy India's shares have shown strong performance, nearly doubling in value year-to-date. The company is expected to benefit from structural themes driving robust growth, including lifecycle service orders, transport infrastructure expansion, and the increasing need for data centers and energy storage solutions.