GE Vernova shares surge 8% as firm declared lowest bidder for Power Grid project; Nomura raises target price
GE Vernova T&D India shares rose after the company emerged as the lowest bidder for a 6,000 MW HVDC project from Power Grid. Nomura raised its target price to Rs 6,000, while Emkay retained its Buy rating with a Rs 5,300 target price. Both brokerages highlighted strong prospects in the transmission sector, capacity expansion, robust cash flows, and healthy earnings growth.
Shares of GE Vernova T&D India surged 8% on Tuesday following the company's selection as the lowest bidder for a 6,000 MW HVDC transmission project from Power Grid Corporation of India. The project aims to transmit renewable power from Barmer II in Rajasthan to South Kalamb. GE Vernova T&D India was awarded the L1 bidder status, indicating the lowest bid among submissions.
The company did not disclose the exact contract value in its filing. The HVDC terminal stations, utilizing line-commutated converter technology, will be constructed at two sites with a combined capacity of 3,000 MW. The Barmer II-South Kalamb corridor is part of India's plan to expand high-capacity transmission infrastructure for renewable power.
Nomura raised its target price for GE Vernova T&D India to Rs 6,000, suggesting a 37.5% upside from the current level. The brokerage expressed confidence in the company's long-term earnings growth due to its strong order book and growing adoption of grid automation technologies.
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