Rs 10,780 Crore Order Book: Electrical Equipments Manufacturer Bags Order from Power Grid Corporation of India
The stock is up by 66.5 per cent from its 52-week low of Rs 960 per share and gave multibagger returns of over 1,200 per cent in 3 years. Investors
GE Vernova T&D India Ltd has secured a significant order from Power Grid Corporation of India Limited (POWERGRID) to supply over 70 units of 765 kV extra high-voltage transformers and shunt reactors. These critical components will be deployed in key transmission projects across India, specifically supporting the development of infrastructure for renewable power evacuation under the country's Tariff-Based Competitive Bidding (TBCB) framework. The order, booked through GE Vernova T&D India Limited, the listed entity of GE Vernova's Electrification business in India, underscores the company's commitment to bolstering India's renewable energy capabilities.
The scope of GE Vernova's involvement encompasses not only the supply of the high-voltage equipment but also its erection, testing, and commissioning. Notably, the manufacturing of these transformers and reactors will take place at GE Vernova's well-established power transformer facility located in Vadodara, India. This local production highlights GE Vernova's in-country manufacturing capabilities and its contribution to the "Make in India" initiative. Deliveries of the equipment are scheduled to commence in 2026 and are expected to continue through the end of 2027, aligning with the timelines for the renewable energy corridor projects.
POWERGRID, as India's largest electric power transmission utility, plays a pivotal role in the integration of renewable energy sources into the national grid. This bulk procurement strategy for transformers and reactors is geared towards establishing high-capacity renewable power corridors across key states including Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Andhra Pradesh. By providing these essential grid components, GE Vernova is actively contributing to India's energy transition goals, enhancing energy security, and reducing reliance on conventional fossil fuels, leveraging their extensive experience in designing and manufacturing 765 kV class equipment at their Vadodara facility since 2009.
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About the Company
GE Vernova T&D India Limited is a publicly traded subsidiary of GE's Grid Solutions business with over a century of experience in power transmission and distribution. The company specializes in connecting power generation sources to the grid, offering a wide range of products and solutions including power transformers, circuit breakers, switchgear, substation automation equipment, digital software, and turnkey substation engineering and construction services. Their portfolio extends from medium to ultra-high voltage (1200 kV) applications, and they also provide advanced technologies like FACTS and HVDC.
The company has a market cap of over Rs 40,000 crore and working capital requirements have reduced from 38.4 days to 30.1 days. The order book of the company as of December 2024 stands at Rs 10,780 crore. The stock is up by 66.5 per cent from its 52-week low of Rs 960 per share and gave multibagger returns of over 1,200 per cent in 3 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.