According to reports from The Economic Times, Hitachi Energy shares have risen nearly 76% year-to-date, supported by healthy revenue growth and strong order inflows. The company's order book reached ₹32,222 crore at the end of the June quarter, which represents its biggest near-term earnings driver. Zacks Investment Research has now upgraded the stock to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This rating change essentially reflects an upward trend in earnings estimates, with the Zacks Consensus Estimate showing positive revisions for current and following years. The Zacks Rank system, which has an impressive externally-audited track record with Zacks Rank #1 stocks generating an average annual return of +25% since 1988, is highly useful for individual investors since it tracks the consensus of EPS estimates from sell-side analysts.
As reported by The Economic Times, the company's June quarter performance was benefited from higher execution, with revenue rising 69% year-on-year. Beyond transmission, battery energy storage systems (BESS) presents another growth avenue. During the quarter, the company secured its first BESS order, a 165 MW/330 MWh project in Andhra Pradesh. Data centres are emerging as an important new demand driver, with the company securing multiple data centre orders during the quarter.
According to The Economic Times, ICICI Securities noted that two HVDC projects make up for around 60% of Hitachi Energy's order book. The company is currently bidding for a greenfield HVDC project, with the order expected to be awarded within six months. Beyond transmission, BESS presents another growth avenue, with margins expected to benefit over the long term from capacity expansion and localisation initiatives.
As reported by The Economic Times, Hitachi Energy began construction of its 20th manufacturing facility at Karjan in Vadodara in June, with the fully digital manufacturing facility targeted for commissioning in December 2028. The facility is expected to expand capacity and strengthen local capabilities. Analysts have revised price targets by 6-11% citing stronger growth visibility, with ICICI Securities upgrading the stock to 'Buy' from 'Add' with a revised target price of ₹40,000, while PL Capital upgraded it to 'Hold' from 'Reduce' with a revised price target of ₹34,026.
