From ₹5,459 to ₹13,354: This power stock surged 145% in one year; did you miss the rally?

Hitachi Energy India, the Indian arm of Switzerland-based Hitachi Energy, has delivered significant returns to its shareholders in 2024, thanks to its strong market position in the power grid segment, diverse product portfolio—including sustainable energy solutions—and a robust clientele. In CY 2024, the power tech company surged as much as 200%, reaching an all-time high of ₹16,534.50 on October 11, rebounding from its 52-week low of ₹5,459 recorded on January 24.

Investor sentiment turned bullish on this sustainable energy stock as India plans to increase power transmission capacity by 35% by 2032. This is expected to create significant investment opportunities in the energy sector, particularly in renewables, high-voltage direct current (HVDC) transmission, data centers, and electric transportation.

Despite recent corrections, the large-cap stock has delivered a 145% return over the past year, rising from its 52-week low to ₹13,354 as of January 14. However, the stock has dropped 10% this month and 19% over the past three months, pulling back from its all-time high as investors booked profit at higher levels. Currently, it trades above its 200-day moving average but remains below its 5-day, 20-day, 50-day, and 100-day averages.

On Wednesday, Hitachi Energy India opened flat at ₹13,353.80 but soon slipped into negative territory, falling up to 3.1% to touch a low of ₹12,931.15 on the BSE. At the time of reporting, the stock was trading 2.6% lower at ₹13,002.35, with a market capitalisation of ₹55,106 crore.

Formerly known as ABB Power Products and Systems India, Hitachi Energy India was formed in February 2019 following the demerger of ABB India's power grid business, with Hitachi acquiring an 80.1% stake in the new entity. As of now, its promoter, Hitachi Energy Ltd., based in Zurich, Switzerland, holds a 75% stake, while public shareholders own 11%. Among institutional investors, foreign institutional investors (FIIs) hold 4.52%, and mutual funds own 6.74% as of the December 2024 quarter.

In November 2024, Hitachi Energy’s HVDC technology was selected by state-owned Power Grid Corporation of India Ltd. to transmit renewable energy from Khavda, Gujarat, to the industrial hub of Nagpur, Maharashtra.

Additionally, in October 2024, the company announced plans to invest approximately $250 million (₹2,000 crore) in its Indian operations over the next five years, coinciding with its 75th anniversary in the country. From Hindustan Electric to Hindustan Brown Boveri, ABB Power Grids, Hitachi ABB Power Grids, and now Hitachi Energy, the company has played a pivotal role in India's energy transition since 1949.

For the second quarter ended September 30, 2024, Hitachi Energy India reported a 111% year-on-year (YoY) surge in net profit to ₹52.3 crore, driven by higher revenues and a low base effect. The company’s revenue for July-September 2024 stood at ₹1,553.8 crore, marking a 26.5% YoY increase, supported by a favourable mix and strong order execution.

In Q2 FY24, the company’s order book stood at ₹1,952 crore, up 11.7% YoY, with large orders coming from the transformers and power quality segments across industries, transportation, utilities, and data centers. As of September 30, 2024, its order backlog reached a record high of ₹8,910 crore, providing strong revenue visibility for the coming quarters.

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