Shares of power transmission equipment makers surged on Thursday after Citi initiated coverage on the sector with bullish views on Hitachi Energy India, GE Vernova T&D India and CG Power. According to reports from Moneycontrol, the brokerage said that transmission infrastructure is emerging as a key bottleneck in the global energy transition. Hitachi Energy India stock jumped 5.6 percent to ₹37,175 by around 11:45 am, making it the top gainer on the BSE Midcap index. GE Vernova T&D India rose 2.7 percent to ₹5,100 and was among the top gainers on the index. CG Power and Industrial Solutions climbed 4.1 percent to ₹944, emerging as the top-performing stock on the Nifty 100.
Citi initiated coverage on Hitachi Energy India with a Buy rating and a target price of ₹46,700 per share, implying 25 percent upside. The brokerage also started coverage on GE Vernova T&D India with a Buy rating and a target price of ₹6,200, and on CG Power with a Buy rating and a target price of ₹1,100. Among its preferred picks, Citi ranked Hitachi Energy India ahead of GE Vernova T&D India, followed by CG Power and Siemens Energy India. The brokerage initiated coverage on Siemens Energy India with a Neutral rating and a target price of ₹4,000.
According to the brokerage, power grids are becoming the "missing link" in the energy transition as rising renewable energy penetration, electrification, industrial growth and expanding data-centre capacity drive a massive increase in transmission and distribution spending globally. As reported by Moneycontrol, Citi cited estimates from BloombergNEF that global transmission and distribution capex could reach about $15 trillion between 2025 and 2050. The brokerage highlighted the Central Electricity Authority's transmission plan for integrating 900 GW of renewable energy capacity by FY36, which points to a multi-year expansion of high-voltage (HV) and high-voltage direct current (HVDC) infrastructure.
The brokerage said that India is uniquely positioned to benefit from this trend as the country manufactures around 80 percent of global transmission and distribution products and is set for a major domestic transmission buildout. According to Citi, the HVDC opportunity alone is estimated at around ₹1.6 trillion for equipment manufacturers. Today's rally in these power stocks adds to a strong one-year performance for the sector, with Hitachi Energy India stock having gained nearly 88 percent over the past year, while GE Vernova T&D India has more than doubled, rising 116 percent.
According to Elara Capital's Rupesh D Sankhe, India's power sector is entering a 10-year supercycle with demand expected to surge by 5-6 percent annually for the next decade. This growth is fueled by increased home appliance use, industries switching to grid power, and new demand from electric vehicles and data centers. Peak demand has already touched close to 270 gigawatt in the current period, with expectations of handling 280-290 gigawatt by FY27. Q1 data from April to June showed power demand growing at nearly 10 percent, a dramatic contrast to the full-year FY26 figure of barely 1 percent growth.
