Hitachi Energy India Ltd
Hitachi Energy India Ltd
Industrials F&OHitachi Energy India Ltd (formerly known as ABB Power Products and Systems India Ltd.) was created in 2019 as a Joint Venture between Hitachi and ABB's Power Grids. The company serves utility and industry customers, with a complete range of engineering, products, solutions, and services in areas of Power technology. [1][2]
Hitachi Energy India delivers exceptional growth with 167% TTM profit growth and 22% ROE, but trades at an extremely stretched valuation of 165.9x PE and 31.66x P/B. The risk-reward is unfavorable for fresh entry despite strong structural tailwinds in India's energy transition.
Key Fundamentals
LargecapElectrical EquipmentCapital GoodsTechnical Indicators
Key Insights
Strengths
3- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 53.7% CAGR over last 5 years
Weaknesses
2- Stock is trading at 29.2 times its book value
- Promoter holding has decreased over last 3 years: -3.69%
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoHitachi Energy India delivers exceptional growth with 167% TTM profit growth and 22% ROE, but trades at an extremely stretched valuation of 165.9x PE and 31.66x P/B. The risk-reward is unfavorable for fresh entry despite strong structural tailwinds in India's energy transition.
- Compounded profit growth of 167% TTM demonstrates explosive earnings momentum, far outpacing sector averages
- Revenue growth of 28% TTM and 22% 3-year CAGR shows strong and sustained demand visibility in power infrastructure
- Company is almost debt-free, providing financial flexibility to fund capex and bid for large energy projects without leverage risk
- ROE improved to 22% last year from 18% 3-year average, indicating improving capital efficiency and operating leverage
- Stock CAGR of 108% over 3 years reflects strong institutional re-rating driven by India's energy transition and grid modernization theme
- 44.44% of analyst ratings are Buy (8 out of 18 analysts), showing selective institutional conviction
- 5-year compounded profit CAGR of 54% validates long-term structural earnings growth trajectory beyond cyclical factors
- Parent Hitachi Energy (global leader in HVDC and grid automation) provides technology moat and order pipeline visibility in Indian market
- PE ratio of 165.9x is extremely expensive, pricing in years of perfect execution with minimal margin of safety
- Price-to-book ratio of 31.66x is exorbitant, implying the market values intangibles at over 30x replacement cost of net assets
- Dividend yield of just 0.02% offers virtually no income cushion during potential drawdowns
- Promoter holding has declined by 3.69% over 3 years, signaling potential dilution or reduced parent commitment
- 27.78% of analysts rate the stock a Sell (5 out of 18), indicating meaningful institutional disagreement at current levels
- Market cap of Rs 164,561 Cr against current earnings implies the stock must sustain 50%+ profit growth for 3-4 years just to justify current multiples
- 1-year stock CAGR of 95% increases risk of mean-reversion or sharp correction on any earnings miss
- 27.78% Hold ratings (5 out of 18) suggest even bullish analysts are cautious on adding at current valuations
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2d ago- ₹2,000 cr Vadodara factory investment Jun 12
Hitachi Energy India announced a ₹2,000 crore investment in a new Large Power Transformer factory in Karjan, Vadodara, scheduled for completion in FY28. Stock gained 4% to ₹34,050 intraday on the announcement; Citi Research initiated coverage with a Buy rating.
- Q4 FY26 profit surges 79.7% Jun 12
Consolidated net profit jumped 79.7% YoY to ₹330.5 crore in Q4 FY26, while revenue rose 46.2% YoY to ₹2,754.1 crore. Market cap stands at ₹1.51 lakh crore as of June 12, 2026.
- Stock up 102% in one year May 27
Hitachi Energy India gained 3.26% to ₹37,170 for a third straight session, with 102.82% one-year return vastly outperforming NIFTY's 3.32% decline. Monthly volumes at 2.01 lakh shares exceeded the 1.53 lakh daily average.
- 1,000+ jobs, Make in India push Jun 13
The new LEED-certified, fully digital Vadodara facility will create over 1,000 direct and indirect jobs, supporting India's projected ₹7.93 lakh crore transmission infrastructure needs by 2035 across HVDC, data centers, and industrial electrification.
- Trading window closed for Q1FY27 Jun 15
Hitachi Energy India closed its trading window from June 16, 2026, ahead of Q1FY27 results, until two days after the board meeting.
- ₹21.15 cr block trade on NSE Jun 8
A block trade of approximately 5,953 shares was executed at ₹35,530 per share on NSE, valued at ₹21.15 crore, typically indicating institutional investor activity.
- No share encumbrance in FY26 Jun 12
Hitachi Energy Ltd and persons acting in concert confirmed zero encumbrance on shares held in Hitachi Energy India for FY ended March 31, 2026.
- Investor day and analyst meets May 26
Hitachi Energy India hosted its investor presentation on May 26 themed 'Powering India's Next 25' and met analysts at the ICICI Securities conference on June 8.
TL;DR: Hitachi Energy India is firing on all cylinders with 79.7% profit growth, 46.2% revenue expansion, and a major ₹2,000 crore capacity investment signaling confidence in India's energy infrastructure buildout. The stock's 102% one-year return and PE of 156x reflect a significant premium, which is the primary risk if execution slips or order flow moderates. No material headwinds are visible in the near term; the trend is firmly positive with Citi initiating at Buy and the new Vadodara factory providing a clear FY28 growth catalyst.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,334 | 1,040 | 1,228 | 1,274 | 1,695 | 1,327 | 1,554 | 1,620 | 1,884 | 1,479 | 1,833 | 2,082 | 2,754 |
| Expenses | 1,239 | 1,006 | 1,163 | 1,206 | 1,513 | 1,279 | 1,444 | 1,453 | 1,646 | 1,324 | 1,534 | 1,737 | 2,338 |
| Operating Profit | 95 | 34 | 65 | 68 | 182 | 48 | 110 | 167 | 238 | 155 | 299 | 345 | 416 |
| OPM % | 7% | 3% | 5% | 5% | 11% | 4% | 7% | 10% | 13% | 10% | 16% | 17% | 15% |
| Other Income | 2 | 3 | 0 | 2 | 4 | 0 | 0 | 52 | 38 | 51 | 83 | 32 | 57 |
| Interest | 11 | 11 | 11 | 14 | 11 | 11 | 16 | 12 | 6 | 4 | 3 | 3 | 3 |
| Depreciation | 21 | 22 | 22 | 23 | 23 | 22 | 23 | 23 | 23 | 25 | 26 | 27 | 27 |
| PBT | 65 | 3 | 32 | 34 | 152 | 15 | 71 | 184 | 247 | 177 | 353 | 348 | 443 |
| Tax % | 22% | 29% | 24% | 32% | 25% | 31% | 26% | 25% | 25% | 26% | 25% | 25% | 25% |
| Net Profit | 51 | 2 | 25 | 23 | 114 | 10 | 52 | 137 | 184 | 132 | 264 | 261 | 330 |
| EPS in Rs | 11.99 | 0.57 | 5.84 | 5.42 | 26.82 | 2.46 | 12.34 | 32.41 | 41.26 | 29.52 | 59.31 | 58.65 | 74.14 |
Profit & Loss
| Dec 2019 | Dec 2020 | Dec 2021 | Mar 2022 15m | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 3,236 | 3,420 | 3,771 | 4,884 | 4,469 | 5,237 | 6,385 | 8,148 |
| Expenses | 2,899 | 3,152 | 3,526 | 4,560 | 4,218 | 4,878 | 5,780 | 6,895 |
| Operating Profit | 337 | 269 | 244 | 323 | 250 | 359 | 605 | 1,252 |
| OPM % | 10% | 8% | 6% | 7% | 6% | 7% | 9% | 15% |
| Other Income | -41 | -18 | 74 | 101 | 15 | 9 | 57 | 186 |
| Interest | 28 | 38 | 32 | 53 | 54 | 57 | 54 | 13 |
| Depreciation | 48 | 77 | 81 | 95 | 80 | 90 | 91 | 104 |
| PBT | 221 | 136 | 206 | 277 | 131 | 222 | 516 | 1,321 |
| Tax % | 25% | 27% | 26% | 26% | 28% | 26% | 26% | 25% |
| Net Profit | 165 | 100 | 152 | 203 | 94 | 164 | 384 | 988 |
| EPS in Rs | 39.02 | 23.55 | 35.8 | 47.99 | 22.16 | 38.64 | 86.15 | 222 |
| Div. Payout % | 0% | 8% | 0% | 6% | 15% | 10% | 7% | 4% |
Balance Sheet
| Dec 2019 | Dec 2020 | Dec 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 8 | 8 | — | 8 | 8 | 8 | 9 | 9 |
| Reserves | 831 | 924 | — | 1,124 | 1,207 | 1,351 | 4,205 | 5,167 |
| Borrowings | 348 | 39 | — | 190 | 334 | 214 | 88 | 86 |
| Other Liabilities | 2,253 | 2,532 | — | 2,201 | 2,369 | 3,134 | 4,311 | 6,782 |
| Total Liabilities | 3,441 | 3,503 | — | 3,524 | 3,919 | 4,707 | 8,613 | 12,044 |
| Fixed Assets | 579 | 656 | — | 653 | 713 | 695 | 717 | 952 |
| CWIP | 57 | 32 | — | 118 | 49 | 63 | 90 | 85 |
| Investments | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 2,804 | 2,815 | — | 2,753 | 3,157 | 3,950 | 7,807 | 11,006 |
| Total Assets | 3,441 | 3,503 | — | 3,524 | 3,919 | 4,707 | 8,613 | 12,044 |
Cash Flow
| Dec 2019 | Dec 2020 | Dec 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Operating | -73 | 610 | -127 | -127 | 5 | 252 | 1,494 | 1,245 |
| Investing | -73 | -89 | -167 | -167 | -12 | -89 | -110 | -271 |
| Financing | 333 | -390 | 61 | 61 | 84 | -199 | 2,295 | -91 |
| Net Cash Flow | 188 | 131 | -233 | -233 | 77 | -35 | 3,679 | 883 |
| Free Cash Flow | -146 | 519 | -294 | -294 | -7 | 163 | 1,366 | 735 |
| CFO/OP | 0 | 244 | -14 | -10 | 29 | 84 | 273 | 139 |
Ratios
| Dec 2019 | Dec 2020 | Dec 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 201 | 168 | — | 106 | 125 | 106 | 121 | 86 |
| Inventory Days | 102 | 103 | — | 93 | 110 | 101 | 91 | 119 |
| Days Payable | 286 | 327 | — | 213 | 204 | 205 | 202 | 246 |
| Cash Conversion Cycle | 18 | -57 | — | -14 | 31 | 2 | 10 | -42 |
| Working Capital Days | 0 | -10 | — | 19 | 21 | 29 | -31 | -46 |
| ROCE % | — | 19% | — | 26% | 13% | 18% | 19% | 29% |
Documents
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Company Information
Hitachi Energy India Ltd (formerly known as ABB Power Products and Systems India Ltd.) was created in 2019 as a Joint Venture between Hitachi and ABB's Power Grids. The company serves utility and industry customers, with a complete range of engineering, products, solutions, and services in areas of Power technology. [1][2]