Buy GE Vernova TD India; target of Rs 5100: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Strong order inflows: GE Vernova T&D India's order intake rebounded 52% YoY to INR24.4b in 2QFY27, driven by domestic orders, which formed ~71% of 2Q bookings.
  • Robust pipeline: The company has a strong pipeline of projects, including the Barmer HVDC project, and expects at least two to three more HVDC projects in the next year.
  • Margin expansion: EBITDA margin expanded 130bp YoY to 27.1% in 2QFY27, driven by operating leverage benefits and a favorable revenue mix.
  • Export growth: Export orders stood at INR10.3b in 1HFY27, driven by demand from GE Vernova group entities across the world.

Thesis Validation Checklist

  • Order inflow growth: Watch for continued strong order inflows, particularly from domestic markets.
  • Pipeline conversion: Monitor the conversion of the company's pipeline into actual orders, particularly for HVDC projects.
  • Margin sustainability: Track the company's ability to sustain its margin expansion, driven by operating leverage benefits and a favorable revenue mix.
  • Export traction: Look for continued growth in export orders, driven by demand from GE Vernova group entities and other global customers.