Archive · 21 Aug 2026
Nuvama Favors Voltamp, BHEL, Siemens Energy and CG Power
Nuvama, a brokerage, studied several companies connected to power equipment and industrial projects.
It liked Voltamp because its profit margins may recover and new investment could increase demand.
It also liked BHEL because its profits could improve as business volumes rise.
Nuvama gave price targets for these companies and for L&T, Siemens Energy, CG Power and others.
It said India needs large investments in electricity transmission and distribution.
This could help companies making transformers, grid equipment and transmission systems.
However, new orders may slow for a while, and some companies already have expensive share prices.
Demand from data centres, metals, oil and gas and renewable energy projects may support a wider industrial recovery.
Nuvama preferred Voltamp and BHEL for valuation comfort, margin recovery and growth potential.
The brokerage set targets of Rs 12,000 for Voltamp, Rs 530 for BHEL and Rs 4,065 for L&T.
It remained positive on Siemens Energy and CG Power within high-voltage transmission and distribution.
Additional targets included Rs 3,483 for Siemens Energy, Rs 1,000 for CG Power and Rs 35,400 for Hitachi Energy.
Nuvama said power-sector demand remained strong, but plateauing orders and limited near-term HVDC visibility could cap upside.
- Who
- Nuvama, the domestic brokerage, evaluated Voltamp, BHEL, L&T, Siemens Energy, CG Power and other industrial companies.
- What
- Nuvama issued preferences and target prices for power, transmission and non-power industrial stocks.
- When
- The assessment refers to FY27, FY28, H2FY26 and the March 2026 outlook.
- Where
- The companies and demand trends discussed are primarily linked to India.
- Why
- The brokerage expects margin recovery, infrastructure spending and industrial-capex growth, while warning that high valuations and slower ordering could limit near-term gains.
Growth and infrastructure opportunity
Valuation and near-term risks
Power transmission outlook
Growth and infrastructure opportunity
Nuvama remained structurally positive because of strong backlogs, upcoming HVDC awards and robust demand.
Valuation and near-term risks
The brokerage said ordering was plateauing, while HVDC visibility beyond the Barmer and Lakadia–Alephata projects remained limited.
Stock valuations
Growth and infrastructure opportunity
Voltamp and BHEL offered comparatively greater valuation comfort alongside margin-recovery potential; Siemens Energy and CG Power also had scope for positive surprises.
Valuation and near-term risks
Power and non-power peers were valued at roughly 50 to 60 times estimated FY28 earnings, leaving limited room for disappointment in some companies.
Industrial recovery
Growth and infrastructure opportunity
Improving enquiries, stronger order inflows and spending in data centres, metals, oil and gas and renewables suggested a broader recovery could develop.
Valuation and near-term risks
Non-power industrial margins were pressured by commodity inflation, and Nuvama was still awaiting a broader upcycle in private-capex spending.
- Voltamp target
- Rs 12,000; Nuvama preferred the company because of early margin recovery and a capex-led growth runway.
- BHEL target
- Rs 530; Nuvama cited operating-leverage-driven margin recovery in FY27.
- L&T target
- Rs 4,065; the brokerage viewed L&T as attractive for long-term growth after resolution of the West Asia crisis.
- Siemens Energy target
- Rs 3,483; Nuvama remained positive on the company within high-voltage transmission and distribution.
- CG Power target
- Rs 1,000; Nuvama said stronger operating performance and multiple options could create positive surprises.
- Transmission investment
- The Central Electricity Authority's 900GW non-fossil roadmap by FY36 implies transmission capex of Rs 7.93 lakh crore.
- Non-power industrial trends
- Revenue growth reached 14.8% year-on-year, while margins declined 320 basis points to 11%; base inflows rose 21.5% year-on-year.