Nomura has initiated coverage on key players in the Transmission & Distribution (T&D) sector, issuing a buy rating for CG Power, GE T&D, and Apar Industries, citing strong growth potential driven by industry tailwinds and strategic positioning.
- CG Power: Nomura has a buy call with a target price of ₹970, anticipating an earnings CAGR of 32% over FY24-27. CG Power is well-positioned to benefit from industry tailwinds, which are expected to support its growth trajectory.
- GE T&D: Nomura also initiated a buy rating on GE T&D with a target of ₹2,500, projecting a substantial earnings CAGR of 76% over FY24-27. This growth is expected to be fueled by new ordering opportunities, market share gains, and strong pricing power.
- Apar Industries: With a target price of ₹11,700, Nomura sees Apar Industries as a proxy play on grid electrification due to its specialization in highly tech-oriented products. The firm expects Apar to capitalize on the growing demand for grid electrification solutions.
Nomura’s positive outlook on the T&D sector reflects the expected growth in grid infrastructure, driven by increasing electrification and modernization efforts across the industry.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
