Add Hitachi Energy India, target price Rs 3438: HDFC Securities

HDFC Securities has add call on Hitachi Energy India with a target price of Rs 3438. The current market price of Hitachi Energy India is Rs 3365.

Hitachi Energy India, incorporated in the year 2019, is a Small Cap company (having a market cap of Rs 14226.47 Crore) operating in Power sector.

Hitachi Energy India key Products/Revenue Segments include Income From Contracts, Sale of services, Other Operating Revenue, Scrap and Commission for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 1041.03 Crore, down -6.63 % from last quarter Total Income of Rs 1115.00 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company has reported net profit after tax of Rs 4.58 Crore in latest quarter.

The company’s top management includes Mr.Achim Michael Braun, Mr.Venu Nuguri, Mr.Ismo Antero Haka, Ms.Nishi Vasudeva, Mr.Mukesh Hari Butani, Ms.Akila Krishnakumar. Company has S R Batliboi & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 4 Crore shares outstanding.

Investment Rationale
The company's revenue is expected to expand through grid automation and modernisation, rail electrification; expansion in the metro network; rise of e-mobility; and hyper growth in data centres. It has another Rs 50 bn revenue opportunity from Vande-Bharat ancillary orders. Given robust order inflows, the brokerage expects HEI FY22-25E EPS CAGR of 67.9%.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.9 per cent, DIIs 7.55 per cent.