Citi initiates coverage on 4 power equipment stocks, forecasts up to 43% EPS growth through FY30 

In its latest report on the electrical equipment sector, the brokerage said power grids are becoming a critical bottleneck as renewable energy adoption, data centre growth and industrial expansion drive rising electricity demand. Citi estimates that the Central Electricity Authority’s transmission plan for 900GW renewable integration by FY36 points to a multi-year buildout of high-voltage and high-voltage direct current infrastructure. 

The brokerage said India is uniquely positioned to benefit from both domestic and global transmission investments because the country manufactures around 80% of global transmission and distribution products. Citi also expects accelerating HVDC adoption, favourable localisation policies and growing export opportunities to support long-term growth for Indian manufacturers.

Citi on Hitachi Energy India: ‘Buy’ 

Citi initiated coverage on Hitachi Energy India with a ‘Buy’ rating and a target price of Rs 46,700 indicating an upside of around 29%.

The brokerage said the company remains the market leader in high-voltage and high-voltage direct current equipment. Citi expects Hitachi Energy India to be among the biggest beneficiaries of upcoming HVDC projects because of its established market position and higher probability of securing near-term project wins.

The brokerage also highlighted the company’s capacity expansion plans, which it believes will help capture additional market share while supporting long-term growth visibility.

Explaining its investment case, Citi said, “HV/HVDC market leader, higher probability of near-term HVDC wins, expanding capacity to capture market share, and significant long-term growth visibility.”

According to Citi, earnings per share could grow at a compound annual growth rate of 43% between FY26 and FY30.

Citi on GE Vernova T&D India: ‘Buy’ 

Citi initiated coverage on GE Vernova T&D India with a ‘Buy’ rating and a target price of Rs 6,200, with a possible upside of 22%.

The brokerage said the company offers strong exposure to HVDC infrastructure and export opportunities. Citi expects medium-term growth to be supported by capacity expansion and access to its parent’s global platform.

According to the brokerage, GE Vernova T&D India is well positioned to benefit from both India’s transmission investment cycle and rising global demand for transmission and distribution equipment.

Discussing the company’s positioning, Citi said, “Strong HVDC and export exposure, medium-term growth supported by capacity expansion and parents’ global platform.”

According to Citi, earnings per share could grow at a compound annual growth rate of 35% between FY26 and FY30.

Citi on CG Power and Industrial Solutions: ‘Buy’ 

Citi initiated coverage on CG Power and Industrial Solutions with a ‘Buy’ rating and a target price of Rs 1,100, indicating an upside of 18%.

The brokerage said the company benefits from diversified exposure across transmission, railways, industrials and semiconductors. Citi expects aggressive capacity additions to support future growth as transmission investments accelerate across the country.

At the same time, the brokerage noted that increasing competition in motors and railway-related businesses could limit margin expansion in some segments.

Summarising its investment thesis, Citi said, “Diversified exposure to transmission, railways, industrials and semiconductors, supported by aggressive capacity addition.”

According to Citi, earnings per share could grow at a compound annual growth rate of 33% between FY26 and FY30.

Citi on Siemens Energy India: ‘Neutral’ 

Citi initiated coverage on Siemens Energy India with a ‘Neutral’ rating and a target price of Rs 4,000, with a slight upside of 6%.

The brokerage said the company benefits from exposure to high-voltage transmission infrastructure and export markets. However, Citi believes limited participation in near-term HVDC opportunities and slower growth in the generation segment could affect its relative growth prospects compared with peers under coverage.

Explaining the rating, Citi said, “HV transmission and export exposure, offset by limited near-term HVDC participation and slower Generation segment growth.”

According to Citi, earnings per share could grow at a compound annual growth rate of 23% between FY25 and FY30.

Citi sees a multi-year transmission investment cycle ahead

The brokerage said India’s transmission network is entering a significant investment phase as the country expands renewable energy capacity.

Citi pointed to the Central Electricity Authority’s transmission plan for 900GW renewable integration by FY36. According to the brokerage, the programme implies a transmission investment opportunity of around Rs 7,90,000 crore over the coming years.

The report also highlighted the growing role of HVDC infrastructure. Citi estimates that HVDC alone represents an original equipment manufacturer opportunity of around Rs 1,60,000 crore. The brokerage said localisation norms and certification requirements create meaningful barriers to entry, strengthening the competitive position of established players.

Discussing the domestic opportunity, Citi said, “The Central Electricity Authority’s transmission plan for 900GW renewable integration by FY36 points to a multi-year buildout of HV and HVDC infrastructure.”

The brokerage believes this investment cycle will provide long-term demand visibility for transmission equipment suppliers.

Global transmission spending could create an additional growth avenue

Beyond India, Citi sees a significant global opportunity emerging for transmission and distribution equipment manufacturers.

The brokerage cited BloombergNEF estimates showing that renewable energy adoption, electrification and data centre growth could drive around $15 trillion of global transmission and distribution capital expenditure between calendar years 2025 and 2050.

According to Citi, renewables could account for nearly 80% of future capacity additions globally. That trend is expected to increase the need for transmission infrastructure and grid stabilisation investments.

Citi also said persistent transformer shortages and increasing global sourcing of HVDC equipment could position Indian manufacturers as important beneficiaries of the next investment cycle.

Explaining the broader backdrop, Citi said, “Accelerating renewable adoption, electrification, and data-center growth are driving a $15 trillion global T&D capex cycle over CY25-50.”

Conclusion

Citi’sreport initiating covreage on these power equipment stocks argued that transmission infrastructure is becoming one of the most important links in the global energy transition. 

The brokerage expects rising renewable energy penetration, growing electricity demand, industrial expansion and data centre investments to drive sustained spending on transmission networks in India and abroad.

Disclaimer: The stock ratings, target prices, and earnings projections discussed in this report are based on institutional equity research from Citi Research and do not constitute direct buy, sell, or hold recommendations for retail investors. Equity investments in the power infrastructure, electrical equipment, and capital goods sectors are subject to significant cyclical risks, including changes in government policy, contract execution speeds, input cost inflation, and domestic capital expenditure trends. Readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial consultant before making individual investment decisions or allocating capital based on these projections.

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