TD POWER SHARES SNAP 2-DAY FALL TO RISE UP TO 5%

TD Power Systems shares rose as much as 5 percent, snapping a two-session decline. The revised target implies a potential upside of around 107 percent from the prevailing market price. TD Power Systems is well positioned to benefit from the global AI and data-cententre power cycle, with exports expected to remain the company’s key growth driver over the medium term. Ongoing debottlenecking and planned capacity expansion are also expected to help the company capitalise on its strong order pipeline. A potential entry into the large-generator segment could further expand TD Power Systems’ addressable market and extend its growth runway beyond FY28E. Demand remains strong across gas engines and gas turbines, supported by rising AI and data-centre power requirements as well as broader captive power-generation needs. TD Power Systems reported an 87.4 percent year-on-year surge in Q1 order inflows, with exports and deemed exports contributing 93.1 percent of total inflows. Its order backlog stood at Rs 22.1 billion, while the book-to-bill ratio was 1.0x. Management expects quarterly order inflows of around Rs 7 billion, providing continued revenue visibility. The brokerage’s higher target price was primarily driven by upward revisions to its earnings estimates and a rollover of the valuation period. While Analyst believes much of the potential upside for FY28E is already reflected in the stock’s valuation, FY29E could better capture the benefits of a potential move into large generators. TD Power Systems also reported a strong 72.1 percent year-on-year increase in Q1 sales, supported by robust execution and sustained demand across its key business segments.