The stock market witnessed significant activity today, particularly with Hitachi Energy India Ltd. The company’s share price surged by an impressive 8%, achieving a new yearly high. On Thursday, the Hitachi Energy stock opened at ₹15,000 on the BSE, which was over 3% higher than its previous closing price. This bullish trend continued, as the share price climbed to a remarkable ₹15,650 on the BSE and reached ₹15,670 on the NSE, marking significant intraday gains.
Remarkably, the Hitachi Energy share price has risen close to 400% over the past year, reflecting strong investor confidence and a robust growth trajectory.
The surge in Hitachi Energy’s share price can be attributed to the company’s strategic expansion plans and abundant growth opportunities in various sectors, including transmission and distribution, metro rail projects, railway expansions, and the burgeoning field of e-mobility and automation solutions.
The Electrification Boom: A Catalyst for Growth
In their recent investor presentation, Hitachi Energy emphasized that electrification in India and worldwide is set to accelerate like never before. The company boasts a comprehensive digital portfolio, offering cutting-edge digitalization solutions from the edge to enterprise, positioning itself as a leader in this space.
Strategic Investments for Future Growth
Since 2020, Hitachi Energy India has invested over ₹350 crore in various manufacturing factories, including a power quality factory in Bangalore, an HVDC and PQ factory in Chennai, a GIS feeder factory in Savli, and a dry-bushing factory in Vadodara. Furthermore, the company plans to invest an additional ₹2,000 crores over the next four to five years to expand its capacities for large and small power transformers, dry and traction transformers, HVDC components, and network control solutions.
Investment Opportunities in Transmission and Distribution
With a staggering transmission capital expenditure of ₹9.2 trillion planned by 2030, the core transmission and distribution (T&D) business presents a formidable opportunity. Analysts at Antique Stock Broking have highlighted this as a key driver for growth in the sector.
Diverse Portfolio Fuels Growth Across Multiple Sectors
Hitachi Energy’s diverse product portfolio, which includes traction transformers, dry-type transformers, switchgears, and SCADA systems, is set to propel growth across various sectors such as transportation, data centers, e-mobility, and industrial decarbonization. Analysts from Antique emphasize that ongoing metro projects, high-speed rail initiatives, Vande Bharat, and Dedicated Freight Corridor (DFC) projects will favor Hitachi Energy, as it is recognized as a preferred vendor in India’s transportation projects.
Strengthening Earnings Through Exports and Services
Looking ahead, Hitachi Energy plans to enhance its export operations, aiming to increase exports from the current 15%-20% range to 20%-25% in the medium term, as highlighted by analysts from Antique. This strategic move is expected to bolster earnings and contribute to the company’s overall growth.
Disclaimer: The insights and recommendations presented above are from various analysts and brokerage firms and do not reflect the views of Mint. Investors are urged to consult certified experts before making any investment decisions.
