GE Vernova emerges lowest bidder for Power Grid project; Share price target raised by analysts

Analysts tracking GE Vernova T&D Ltd. have raised their price targets on the stock on Tuesday, September 8, after the company emerged as the lowest bidder for a Power Grid project.

The company said in its exchange filing that Power Grid named GE Vernova T&D as the L1 bidder in a letter issued on Monday.

According to the letter, the scope for the project involves the design and establishment of a 6,000 MW, ±800kV HVDC terminal station. The two terminals of 3,000 MW each are located at Barmer II in Rajasthan and at South Kalamb in Maharashtra.

The project will involve the evacuation of renewable power. While the order value has not been disclosed, the project is supposed to be executed across multiple years.

Power Grid was announced as the successful bidder for the ISTS Barmer HVDC project on September 2.

GE Vernova T&D Share Price Target Raised

According to brokerage firm InCred, the full Barmer HVDC project cost is worth over ₹25,000 crore with HVDC equipment typically being nearly 40% of the overall project value. The LCC OEM opportunity is also worth nearly ₹10,000 crore.

While ordering activity has been the only overhang, InCred continues to prefer GE Vernova T&D over Hitachi Energy.

Nomura has raised its share price target on GE Vernova T&D to ₹6,000 while maintaining its "buy" rating, stating that the landmark HVDC order win enhances the long-term growth outlook for the company.

Estimating the value of the order to be ₹13,000 crore, Nomura termed it as a "major catalyst" for the stock and now estimates the company's Profit After Tax (PAT) to grow at a Compounded Annual Growth Rate (CAGR) of 31% over financial year 2026-2029.

As a result, Nomura has also raised GE Vernova T&D's revenue estimates for financial year 2028 and 2029 by 4% and 9% respectively, calling the HVDC order win a "positive surprise."

Citi expects this order win to bring revenue recognition from financial year 2029 for GE Vernova T&D, thereby driving a 25% jump to their prior Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and Earnings per Share (EPS) estimates for financial year 2029.

The brokerage said that it was expecting Hitachi Energy to win the order, given its higher local content share in the LCC-based HVDC and execution bandwidth. With GE Vernova now bagging the order, Citi has cut its price target on Hitachi Energy to ₹42,000 and also closed its "positive catalyst watch" stance on the stock.

Citi has a "buy" rating on GE Vernova with a price target of ₹5,400.

Shares of GE Vernova T&D ended 1.2% higher on Monday at ₹4,356.7. The stock has risen 58% so far this year.