Hitachi Energy gets ₹45,790 target from Jefferies

!POWERINDIA Limited (POWERINDIA) rose up to 3% on September 17 after Jefferies initiated coverage with a ₹45,790 target, implying 52% upside from the previous close. Jefferies expects earnings per share to grow at a 54% CAGR during FY26-29E. Its thesis is based on sustained spending on India’s power transmission and distribution network, along with a higher contribution from services. Battery Energy Storage Systems and data centres are additional growth opportunities. My view is that the earnings growth estimate is the more important part of the call, rather than the ₹45,790 target itself. A 54% EPS CAGR would need sustained order conversion, execution and margin delivery. The shift towards services could also improve revenue visibility, while BESS and data-centre demand can add new growth avenues. The key risk is that a large part of the growth expectation is already reflected in the stock. POWERINDIA was trading near ₹31,000 on September 17, compared with its 52-week high of ₹38,785. Investors should therefore track order inflows, execution, service revenue growth and actual EPS delivery against the FY29 estimates. My stance: the long-term growth case depends on whether Hitachi Energy India can convert India’s T&D and new-energy spending into sustained earnings growth. The FY27-FY29 execution trajectory is the key trigger to watch. Disclosure: I do not hold any position in Hitachi Energy India.