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Nomura Sets ₹6,000 Target for GE Vernova T&D Amid Strong HVDC Pipeline
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CNBC TV18•24-09-2026, 14:44
Nomura Sets ₹6,000 Target for GE Vernova T&D Amid Strong HVDC Pipeline
- •Nomura retained its 'Buy' recommendation on GE Vernova T&D India Ltd. with a price target of ₹6,000 per share, despite shares trading lower.
- •The brokerage highlighted GE Vernova T&D's robust high voltage direct current (HVDC) pipeline, with a recent $1.5 billion order boosting its estimated HVDC order book to $2.2 billion.
- •Management anticipates the company's total addressable market (excluding HVDC) to grow to $8.5 billion by 2030 from $5.2 billion in 2025, driven by grid modernization, renewable energy, and AI data centers.
- •GE Vernova T&D plans a ₹1,000 crore investment to expand manufacturing capacity for transformers, air insulated switchgear, and gas insulated switchgear, with significant capacity increases by December 2028.
- •The company reiterates its guidance for EBITDA margins in the mid-20% range for FY27, expecting to sustain these margins beyond FY27 through operating leverage despite potential gross margin dilution from HVDC orders.
Key Questions Answered
Nomura has retained a 'Buy' recommendation on GE Vernova T&D India shares with a price target of ₹6,000 per share following a management meeting.
The company plans to invest around ₹1,000 crore to increase transformer capacity by 50% and AIS and GIS capacity by 25% each by December 2028, alongside adding HVDC and VSC STATCOM valve lines by early 2027.
HVDC projects typically have an execution period of 48 to 54 months, making their execution more back-ended compared to 18 to 24 months for transformer projects.
