2 days ago
GE Vernova T&D India Shares Jump on Major HVDC Order
GE Vernova T&D India won a large contract connected to India’s electricity network.
The work involves building equipment that can move 6,000 megawatts of renewable power.
The power will be sent from Barmer-II to South Kalamb.
The wider project also includes a long transmission line and other electricity equipment.
Nomura estimated that GE Vernova T&D India’s contract is worth Rs 12,980 crore.
Nomura expects most of the company’s revenue from this order to arrive later, beginning in the second half of FY28.
The brokerage raised its earnings estimates and stock-price target.
GE Vernova T&D India shares rose 9% after the order news.
GE Vernova T&D India secured a Power Grid Corporation of India contract for a 6,000 MW, ±800 kV HVDC terminal station.
Nomura estimated the contract value at Rs 12,980 crore and the broader project’s capital expenditure at about Rs 26,000 crore.
The project will evacuate renewable power from Barmer-II to South Kalamb through terminals, a roughly 1,000-km HVDC line and related infrastructure.
Nomura raised its FY27 order-inflow estimate to Rs 23,100 crore from Rs 12,000 crore and increased its FY28-FY29 revenue estimates.
Nomura retained its Buy rating and lifted its target price to Rs 6,000 from Rs 5,675, implying 37.5% upside from the cited September 7 closing price.
- Who
- GE Vernova T&D India secured the contract from Power Grid Corporation of India Limited; Nomura analyzed its potential impact.
- What
- A contract to design and establish a 6,000 MW, ±800 kV HVDC terminal station as part of the Barmer-South Kalamb transmission project.
- Where
- Between Barmer-II and South Kalamb in India.
- When
- Power Grid Corporation of India Limited was declared the successful bidder on September 2; the cited share-price reference was the September 7 closing price.
- Why
- To evacuate renewable power through a high-voltage transmission system.
Key facts
- Estimated contract value
- Rs 12,980 crore
- Project capacity
- 6,000 MW
- HVDC voltage
- ±800 kV
- Broader project capital expenditure
- About Rs 26,000 crore
- Estimated HVDC revenue
- Rs 2,250 crore in FY28 and Rs 4,800 crore in FY29
- Nomura target price
- Rs 6,000, up from Rs 5,675
- Cited closing price
- Rs 4,363 on September 7
Quotes
Nomura
Brokerage covering GE Vernova T&D India
“GVTD's HVDC order win came in as a positive surprise as we were not factoring in a HVDC order win for GVTD in FY27E.”
businesstoday.in
Sources
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