Multibagger Stock: Shares of Hitachi Energy surged 18% in early trade on January 30, to hit ₹12,060 apiece, following the release of the company’s Q3FY25 results, which surpassed street estimates. After market hours on Wednesday, the company reported a 498% year-on-year (YoY) increase in consolidated net profit for Q3, reaching ₹137.4 crore, primarily due to a low base. Sequentially, net profit soared 162.7%, compared to ₹52.3 crore in the previous quarter.
Revenue rose 31% YoY to ₹1,672.4 crore in the October-December 2024 quarter, driven by a favourable execution mix and improving operational efficiencies. EBITDA for the third quarter stood at ₹168.9 crore, resulting in a double-digit margin of 10.1%, underscoring the company’s continuous efforts to enhance profitability and operational efficiency.
The company recorded its highest-ever quarterly order intake of ₹11,594.3 crore in the period ending December 31, 2024. This surge was primarily attributed to a large high-voltage direct current (HVDC) order for transmitting renewable energy from Khavda, Gujarat, to Nagpur, Maharashtra. Additionally, the transmission segment (excluding the HVDC order) drove order book momentum, led by power quality and substation projects, the company said in its earnings filing.
Other key contributing segments included transportation, industries, and data centers. Excluding the one-time large HVDC order, exports accounted for over 40% of total Q3FY25 orders, with power quality, substation, and renewable orders from Australia, Indonesia, Canada, Croatia, Azerbaijan, and other regions. Similarly, the services segment comprised 11% of total orders (excluding HVDC).
As of December 31, 2024, the company reported its highest-ever order backlog of ₹18,994.4 crore, ensuring strong revenue visibility for the coming quarters, according to Q3 earnings filing.
Meanwhile, the stock has delivered a multibagger return of 1400% over the last five-year period.
Growth Opportunities
Despite some downward recalibration of growth estimates for the short term, analysts peg the Indian economy is likely to grow over the coming years. In conjunction, India’s electricity demand is set to exceed 700 GW by 2047, 2.5 times the current levels.
To meet this voluminous requirement and its 2030 targets, the country needs to scale up its renewable capacity beyond 50 GW annually. This entails strengthening grid infrastructure and developing localized supply chains, in addition to adding generation capacity.
Along with transmission infrastructure buildup, focusing on high-performance sectors like energy storage, green hydrogen, and industries will add more momentum to the overall market growth. Thus, strategic investment in clean energy, transformative infrastructure, and digital innovation will help India meet its energy targets—mid- and long-term—to achieve a sustainable energy future for all, as per the company’s earnings filing.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
