The shares of this small-cap stock, providing EPC services for thermal and hydropower plants, jumped 12 percent in Thursday’s trading session after receiving multiple work orders.
Stock Performance
With a market capitalization of Rs 1,729.76 crore, GE Power India Ltd surged more than 12 percent in Thursday’s trading session and made an intraday high of Rs 267.95 per share compared to its previous closing price of Rs 233.85 per share. The stock retraced and was trading at Rs 257.30 which is 10 percent higher than the previous closing price.
What Happened
GE Power India Ltd has recently secured contracts from NTPC Limited and M.P. Power Generating Co. Ltd. totaling approximately Rs 40 crore. The work order from NTPC requires parts for a steam turbine for the Talcher site which is to be executed within 15 months. The contract from M.P. Power comprises services for boiler panels to be executed within 80 days.
Company Overview
GE Power India Limited provides EPC services for power generation and transmission infrastructure requirements. Its business covers mills, boilers, automation, and air quality systems. It also works with steam, hydro, and gas power, supported by manufacturing facilities in Durgapur and Noida. Additionally, GE Power offers EPC services for global gas projects.
There was a near 244 percent increase in steam power order intake from Rs 134 crores in Q3 FY24 to Rs 461 crores in Q3 FY225. This growth was primarily driven by R&M (Repair & Maintenance) jobs for Steam Turbines, especially at Vindhyachal ST. The order intake from discontinued operations include Rs 522 crore.
Financial Performance
In the latest quarter, GE Power reported an 8 percent YoY increase in revenue from Rs 294 crore to Rs 317 crore. On a quarterly basis, the revenue went up by 46 percent from Rs 217 crore in Q2 FY25. The company incurred a loss of Rs 19 crore in Q3 FY25 as compared to a profit of Rs 0.4 crore in Q3 FY24. Net profits stood at Rs 67 crore in the previous quarter during FY25.
Industry Outlook
The Indian government aims to commission 21 new nuclear reactors with a combined capacity of 15,700 MW by 2031. According to the Central Electricity Authority (CEA), India’s power demand is projected to reach 817 GW by 2030. By 2029-30, renewable energy’s share in power generation is expected to rise from 18 percent to 44 percent, while thermal energy’s share is likely to drop from 78 percent to 52 percent. The government also targets achieving 500 GW of renewable energy capacity by 2030.
Written by Shwetha Sairam
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