3 weeks ago
Hitachi Energy India Shares Surge 10% on Strong Quarterly Results
Hitachi Energy India makes big machines that help carry electricity from power plants to homes and factories.
The company shared its results for the three months that ended in June, and the numbers were very good.
It earned a lot more money than it did in the same period one year ago.
Because investors were happy, they bought more shares, and the price jumped more than 10 percent in one day.
The company also has the biggest pile of future orders it has ever had, which means lots of work is coming.
The orders include projects for factories, data centres, and renewable energy projects.
It even won its first order to build a giant battery that stores electricity for later.
Some experts think the shares are a great buy and raised their price targets.
Others warn that the shares are already very expensive, so a few experts say to be careful.
Most experts, though, still recommend buying the stock.
Hitachi Energy India shares jumped 10.24 percent to Rs 35,915 by 12.13 pm on Monday, August 10.
Revenue rose 69 percent year-on-year to Rs 2,493 crore, while EBITDA more than doubled to Rs 363 crore.
The company reported its highest-ever order backlog of Rs 32,222 crore, up 10 percent from last year.
Excluding a Rs 1,700-crore HVDC order, new orders grew 26 percent to Rs 5,096 crore, driven by industrials, data centres and renewable energy.
Of 20 analysts covering the stock, 12 recommend buying, five suggest holding and three advise selling.
The company won its first battery energy storage system order for a 165 MW/330 MWh project.
- Who
- Hitachi Energy India, a power equipment company listed on Indian stock exchanges
- What
- Its shares surged 10.24 percent to Rs 35,915 after investors welcomed strong June-quarter results
- Where
- India, with the stock trading in Mumbai
- When
- Monday, August 10
- Why
- Revenue jumped 69 percent, the order backlog hit a record, and several analysts raised ratings or price targets
Valuation-Focused View
Growth-Focused View
Stock valuation vs. growth outlook
Valuation-Focused View
The stock trades at a price-to-earnings ratio of 134, making it expensive on traditional measures, and three of 20 analysts advise selling.
Growth-Focused View
Strong revenue growth, record order backlog and expected spending on grids, data centres and renewable energy justify the premium, with 12 of 20 analysts recommending buying.
Key facts
- Share price
- Rs 35,915, up 10.24% on August 10
- Market value
- About Rs 1.60 lakh crore
- Revenue
- Rs 2,493 crore, up 69% year-on-year
- EBITDA
- Rs 363 crore, up 135%
- EBITDA margin
- 14.5%, up from 10.4%
- Order backlog
- Rs 32,222 crore, highest ever
- Price-to-earnings ratio
- 134
- Analyst ratings
- 12 buy, 5 hold, 3 sell (of 20 analysts)
Quotes
ICICI Securities
Brokerage firm analyst team
“"We upgraded Hitachi Energy to a buy and raised the target to Rs 40,000."”
freepressjournal.in
“"We began coverage with a buy rating and a target of Rs 40,030."”
freepressjournal.in
Sources
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