Shares of Hitachi Energy India gained 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 46,700 per share.
The brokerage's positive outlook is driven by expectations of a significant long-term investment cycle in transmission and distribution (T&D) infrastructure, both in India and across global markets. Citi believes power grids are becoming one of the biggest bottlenecks in the global energy transition, creating substantial opportunities for companies involved in grid modernization and power transmission equipment.
According to estimates cited by Citi from BloombergNEF (BNEF), global transmission and distribution capital expenditure could reach nearly $15 trillion between 2025 and 2050. The spending is expected to be supported by rising renewable energy adoption, increasing power demand from data centres, and continued industrial expansion.
The brokerage highlighted that India is well-positioned to benefit from this trend due to its strong manufacturing capabilities in transmission and distribution equipment. India currently produces nearly 80% of the world's transmission and distribution products, making it a key supplier to both domestic and export markets.
Citi also pointed to several structural growth drivers for the sector, including the rapid adoption of High Voltage Direct Current (HVDC) technology, government policies promoting localization, and growing export opportunities for Indian manufacturers.
Against this backdrop, Citi initiated coverage on Hitachi Energy India with a Buy rating and a target price of Rs 46,700, reflecting confidence in the company's ability to benefit from increasing investments in grid infrastructure and power transmission projects.
The brokerage believes the company's technology portfolio, market position and exposure to grid modernization projects place it in a strong position to capitalize on the expanding opportunities in India's power sector.
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