Jefferies has initiated coverage on India’s industrials sector, turning bullish on Hitachi Energy India Ltd and neutral on CG Power and Industrial Solutions Ltd, citing contrasting earnings growth outlooks between the two companies.
The brokerage initiated a buy call on Hitachi Energy with a target price of ₹25,000 per share, highlighting strong margin expansion and robust order visibility. Jefferies expects Hitachi Energy’s earnings per share (EPS) to grow at an impressive 81% CAGR over FY25–27E, driven by rising infrastructure investments, demand for grid modernization, and operational leverage. The company’s order book, currently at 4.6x FY25 sales, provides strong revenue visibility, and the stock is valued at 70x Sep-27E earnings.
On the other hand, Jefferies initiated a hold call on CG Power with a target price of ₹745 per share, projecting a more modest 32% EPS CAGR over FY25–27E. The brokerage said that while the power division remains healthy, weakness in the industrial segment is likely to offset part of that growth.
Jefferies added that both Hitachi Energy and Siemens Energy are positioned to deliver strong share price performance as margins continue to surprise on the upside, supported by structural tailwinds in India’s capital goods and power equipment sectors.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
