2 weeks ago
Hitachi Energy shares seen hitting Rs 40,000; analysts turn bullish
Hitachi Energy India is a company that makes big machines that help move electricity from power plants to homes, schools, and factories.
The company announced that it made a lot more money this year than it did last year.
Its profit more than doubled, and its sales also grew a lot.
When a company earns more money, the value of owning part of it goes up.
People who own parts of the company, called shareholders, have seen their investment grow almost forty times bigger over six years.
The company also received many new orders, including one for giant batteries that store electricity for later use.
Because the company is doing so well, several experts who study companies say its parts could be worth even more money soon.
Some experts gave it a 'buy' rating and said the value could reach Rs 40,000.
However, not all experts agree, as one says there is limited room to grow and keeps a 'hold' rating.
The experts also warn about risks, like competition from companies in China and possible delays in big contracts.
Hitachi Energy India shares settled at Rs 35,620 on Thursday with a market cap of about Rs 1.6 lakh crore, down over 8% from the 52-week high of Rs 38,800 hit on June 1 and up more than 120% from the January 2026 low.
The stock has gained nearly 60% in six months, 90% in 2026 so far, about 710% in three years and roughly 3,850% (nearly 40x) over the last six years.
For the quarter ended June 30, 2026, net profit jumped 123.5% year-on-year to Rs 294.15 crore and revenue rose 68.6% to Rs 2,493.69 crore; EBITDA stood at Rs 395.02 crore with margins reported at 16% (ICICI Securities cited 14.6%).
Quarterly order inflows grew 26.1% year-on-year to Rs 5,096.5 crore, including the company's first Battery Energy Storage System (BESS) order for a 165 MW / 330 MWh project, taking the order backlog to an all-time high of Rs 32,222.1 crore.
Analysts raised targets: HDFC Securities kept ADD at Rs 34,667, IDBI Capital upgraded to 'buy' at Rs 37,909, ICICI Securities upgraded to 'buy' at Rs 40,000, and HSBC initiated coverage with a 'buy' rating and a Rs 40,030 target.
Growth expectations rest on a robust HVDC pipeline, electrification momentum, data centre demand and 25% exports contribution, with transmission bidding seen at Rs 70,000-90,000 crore per annum over the next three years.
- Who
- Hitachi Energy India, an Indian-listed power equipment company, and brokerage analysts including HDFC Securities, IDBI Capital, ICICI Securities and HSBC.
- What
- Hitachi Energy India reported strong June-quarter results and received fresh 'buy' ratings and higher price targets, with some targets reaching or approaching Rs 40,000.
- Where
- India (Indian stock market).
- When
- Results were for the quarter ended June 30, 2026; the stock settled at Rs 35,620 on Thursday (August 2026).
- Why
- Robust electrification demand in India and globally, an all-time-high order backlog, a strong HVDC pipeline, data centre orders, exports and new products such as BESS are expected to drive growth.
Cautious analysts
Optimistic analysts
Stock upside
Cautious analysts
HDFC Securities maintains ADD with an increased target of Rs 34,667, citing limited upside from current levels despite a robust HVDC pipeline and new products.
Optimistic analysts
ICICI Securities (Rs 40,000), HSBC (Rs 40,030) and IDBI Capital (Rs 37,909) upgrade or initiate 'buy' ratings, expecting growth from HVDC orders, data centres, exports and BESS.
Margin outlook
Cautious analysts
Gross margins came in lower due to product mix, and HVDC orders are expected to be margin-dilutive, prompting a marginal cut in FY27 EBITDA estimates.
Optimistic analysts
With volume growth, brokerages expect the positive margin trajectory to be maintained; ICICI Securities noted EBITDA margins expanded 410 bps year-on-year with EBITDA and PAT growing 2.3x.
Key facts
- Share price (Thursday)
- Rs 35,620, little changed
- Market capitalisation
- ~Rs 1.6 lakh crore
- 52-week high
- Rs 38,800, hit on June 1
- Six-year return
- ~3,850% (nearly 40x)
- Q1 net profit
- Rs 294.15 crore, up 123.5% YoY
- Q1 revenue
- Rs 2,493.69 crore, up 68.6% YoY
- Order backlog
- All-time high of Rs 32,222.1 crore
- Analyst price targets
- Rs 34,667 (HDFC), Rs 37,909 (IDBI), Rs 40,000 (ICICI), Rs 40,030 (HSBC)
Quotes
ICICI Securities analyst
Analyst at ICICI Securities
“"We expect transmission bidding of Rs 70,000–90,000 crore per annum for the next three years. Bidding in YTDFY27 has already crossed Rs 0.4 lakh crore. The outlook is further bolstered by new transmission approvals worth Rs 0.5 lakh crore in YTD–FY27. We upgrade to 'buy' with a revised target price of Rs 40,000."”
businesstoday.in
“"Given limited upside, we maintain ADD, with an increased target price of Rs 34,667 per share to factor in robust HVDC pipeline, new capex announcement, increasing share of exports, emergence of Indian datacentre opportunity and introduction of new products like BESS in Indian markets."”
businesstoday.in
Sources
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