Buy GE Vernova; target of Rs 5928: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Strong execution with revenue growth of 32% YoY, driven by robust domestic and export orders, and a healthy order backlog of INR214.4bn.
  • Order intake increased 52% YoY, with momentum expected to carry over in H2 FY27, supported by a healthy pipeline of domestic TBCB projects and export opportunities.
  • Pick up in STATCOM orders, large data centre projects, and upcoming 2-3 HVDC projects bidding next year further strengthens order pipeline visibility.
  • Export momentum remains healthy, with H1 export inflows exceeding the FY26 total, supported by broad-based demand across North America, Europe, the Middle East, and Africa.

Thesis Validation Checklist

To validate the investment thesis, watch for: continued strong order intake, particularly in domestic TBCB and export orders; progress on the INR10bn capex programme; and successful execution of HVDC projects, including the Barmer-Kalamb project. Also, monitor the company's ability to maintain its EBITDA margin in the mid-20s range and its progress in localizing critical HVDC components and supplier development.