Shares of GE Vernova T&D India surged more than 2% in early trade on Thursday, June 4, after global brokerage Citi initiated coverage on the stock with a "Buy" rating and a target price of Rs 6,200 per share.
The brokerage's bullish stance comes amid growing optimism around India's transmission and distribution (T&D) sector, which is expected to play a critical role in supporting the global energy transition and expanding renewable energy infrastructure.
As of 9:31 AM, GE Vernova T&D India shares were trading near their day's high after opening at Rs 5,134. The stock touched an intraday high of Rs 5,148.50 and a low of Rs 5,036.50, compared to its previous close of Rs 4,964.50. Trading activity remained strong, with around 1.82 lakh shares changing hands.
Citi noted that power grids are increasingly becoming a major bottleneck in the transition towards cleaner energy systems. As renewable energy installations rise globally, significant investments will be required to strengthen transmission networks and ensure reliable electricity delivery.
According to estimates cited by the brokerage from BloombergNEF (BNEF), global transmission and distribution capital expenditure could reach nearly $15 trillion between 2025 and 2050. The investment cycle is expected to be driven by rising renewable energy penetration, expanding data centre infrastructure and growing industrial demand.
The brokerage believes India is well-positioned to benefit from this trend, highlighting that the country currently manufactures around 80% of the world's transmission and distribution products. This gives Indian companies a strong position in both domestic and export markets.
Citi also highlighted several long-term growth drivers for the sector, including increasing adoption of High Voltage Direct Current (HVDC) technology, government-led localisation initiatives and growing export opportunities.
The positive brokerage initiation further boosted investor sentiment towards GE Vernova T&D India, which has already delivered a strong rally over the past year and is currently trading close to its 52-week high of Rs 5,222.10.
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