GE Vernova T&D India Ltd
Investment Thesis
Over a 12-18 month horizon, GE Vernova T&D India Ltd will deliver robust financial outperformance, driven by sustained government infrastructure spending on power transmission and increasing integration of renewable energy sources.
Conviction History
Assumptions
Revenue growth will exceed 15% year-on-year, fueled by consistent order inflows from government tenders for grid expansion, modernization, and renewable energy evacuation projects.
Gross margins will be sustained above 28%, supported by strong pricing power for ultra-high voltage equipment and effective management of key input costs like copper and aluminum.
The company will maintain its near debt-free status, with its Debt-to-Equity ratio remaining below 2% through disciplined financial management.
Capital expenditures will increase by 10-15% over the next 18 months to expand manufacturing capacity for transformers and switchgear, supporting future order fulfillment.
Debtor days will be managed below 130 days, indicating continued efficiency in working capital management and strong cash conversion.
No significant governance failures, regulatory breaches, or existential threats that could impact the company's operations or market standing will emerge.
Recent Developments
GE Vernova T&D India's share price spiked over 11% post HVDC contract - MSN
GE Vernova T&D India secured a major HVDC contract, leading to an 11% share price spike and significantly boosting its high-voltage order book.
US-India interim trade deal removes 25% additional tariff on T&D equipment exports, enhancing global competitiveness.
US-India interim trade deal removes 25% additional tariff on exports, enhancing global competitiveness for T&D equipment.
Copper price spikes are slowing order closure rates while competitor Voltamp is adding 6,000 MVA of EHV capacity by June 2026, threatening margins and volume growth.
Voltamp targets to commission greenfield transformer plant by June 2026 - T&D India
Sharp increases in copper prices have begun slowing order closure rates across the transformer sector, threatening near-term volume growth and margin stability. Simultaneously, competitor Voltamp is commissioning a 6,000 MVA greenfield plant for 220kV transformers by June 2026, increasing regional capacity and potential pricing pressure in the EHV segment.