Synopsis: Hitachi Energy India, GE Vernova T&D India, and CG Power are among the power equipment stocks recommended by global brokerage firm Citi, with a potential upside of up to 33 percent based on India’s multi-year grid infrastructure expansion.
Several brokerages have highlighted companies that are well-positioned to benefit from favorable industry trends, strong execution capabilities, and long-term infrastructure spending. Backed by sectoral tailwinds and growing opportunities in their respective markets, these businesses are expected to witness healthy growth in the coming years, making them worth tracking for medium- to long-term investors.
Why Citi is Bullish on India’s Power Equipment Space
According to a recent CNBC-TV18 report, global brokerage firm Citi has initiated coverage on India’s electrical equipment space with a positive outlook, highlighting that the country is positioned to benefit from both a large domestic transmission buildout and a massive global transmission and distribution (T&D) investment cycle extending through 2050.
India’s growth opportunity is backed by the Central Electricity Authority’s (CEA) roadmap, which estimates nearly Rs.7.9 lakh crore of transmission investments to integrate around 900 GW of renewable energy capacity by FY36. Within this opportunity, High Voltage Direct Current (HVDC) projects alone could create an estimated Rs. 1.6 lakh crore market for equipment manufacturers.
Citi believes established Indian players are well placed to capitalize on this trend due to their technical expertise, strong manufacturing capabilities, and high entry barriers in the sector. Based on these factors, the brokerage has identified three key beneficiaries of the long-term transmission boom.
Hitachi Energy India: Citi’s Top Pick
Hitachi Energy India is Citi’s preferred stock in the sector. The brokerage has assigned a “Buy” rating with a target price of Rs.46,700 per share, implying an upside potential of about 34% from current levels.
The company is expected to be one of the biggest beneficiaries of India’s upcoming HVDC project pipeline. Citi forecasts a strong earnings growth trajectory, estimating an EPS CAGR of around 43% between FY26 and FY30. The brokerage believes Hitachi Energy’s technical qualifications, strong execution capabilities, and visibility on future project wins position it favorably for the next phase of grid modernization.
The company operates across power technologies, grid automation, transformers, high-voltage equipment, and renewable energy transmission solutions, serving both domestic and international markets.
GE Vernova T&D India: Leveraging Global Opportunities
Citi has also maintained a positive view on GE Vernova T&D India, assigning a “Buy” rating and a target price of Rs.6,200 per share, indicating a potential upside of roughly 30%.
The brokerage expects the company to deliver an EPS CAGR of nearly 35% between FY26 and FY30. A major growth driver is its strong presence in high-voltage transmission equipment, along with access to global opportunities through its parent company’s international network.
GE Vernova T&D India provides transmission and distribution solutions, including substations, grid equipment, and electrification technologies. The company plays an important role in supporting renewable energy integration and strengthening India’s power infrastructure.
CG Power: Capacity Expansion Driving Growth
CG Power and Industrial Solutions is the third stock highlighted by Citi, with a “Buy” recommendation and a target price of Rs.1,100 per share. The target suggests an upside potential of around 22%.
The brokerage expects CG Power to generate an EPS CAGR of approximately 33% through FY30, supported by ongoing capacity expansions across multiple product segments. While competition in standard industrial motors could limit some margin expansion, Citi believes the company’s diversified business model and manufacturing growth plans provide a strong foundation for earnings growth.
CG Power manufactures transformers, switchgear, industrial motors, railway traction systems, and other electrical equipment. The company is also expanding into newer engineering opportunities, including semiconductor-related manufacturing.
Key Takeaway
Citi views India’s power transmission ecosystem as a long-duration growth story supported by domestic renewable energy targets and a global T&D investment cycle. Among the stocks under coverage, Hitachi Energy India stands out as the brokerage’s top pick due to its strong exposure to HVDC opportunities, while GE Vernova T&D India and CG Power are expected to benefit from grid modernization, export opportunities, and capacity expansion. With projected earnings growth and sector tailwinds remaining strong, these companies could remain key beneficiaries of India’s multi-year power infrastructure buildout.
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