Stock of this capital goods company has zoomed over 100% since April

The Finance Minister's latest Budget for FY 2023-24 has laid emphasis on government commitment to move towards net zero carbon emission by 2070

Deepak Korgaonkar Mumbai
green energy targets in mind, but is India technology-ready?

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Shares of GE T&D India hit a 52-week high of Rs 237.90, surging 13 per cent on the BSE in Thursday's intra-day trade. In the past one month, the stock price of the heavy electric equipments manufacture has rallied 66 per cent as compared to 3.4 per cent rise in the S&P BSE Sensex.

Since April, the market price of the company has more-than-doubled, zooming 101 per cent, from a level of Rs 118.65, hit on March 31, 2023.

GE T&D India has clarified that the company has made all necessary disclosures pursuant to Sebi's listing regulations within stipulated timelines to the stock exchanges. "There is no information/announcement (including impending announcement) which, in our opinion, may have a bearing on the price / volume behaviour of the scrip of the Company and which are pending to be disclosed by the Company to the stock exchanges as on date," the company had said on April 28.

The Finance Minister's latest Budget for 2023-24 has laid emphasis on the government's commitment to move towards net zero carbon emission by 2070.

Green energy is 1 of the 7 most important priorities of the Budget. It includes allocation of Rs 35,000 crore of priority capital investment towards achieving this net Zero emission by 2070. The Budget also has set aside a vital Rs 8,300 crore from the central funds towards the Rs 20,000 crore was projected for building the interstate transmission system for the evacuation and grid integration of 13 gigawatts of energy from Ladakh.

The clean energy acceleration, along with government focus on introduction of policy reforms such as reforms in the EV sector as well as overall manufacturing landscape, will also boost the transmission industry, the management said.

Meanwhile, the board of directors of GE T&D India is scheduled to meet on May 23, 2023 to consider and approve the audited financial results for the financial year ended on March 31, 2023 and to consider recommendation of dividend, if any for the said year.

GE T&D India is a leading player in the Power Transmission & Distribution business - a product portfolio ranging from Medium Voltage to Ultra High Voltage (1200 kV) for Power Generation, Transmission and Distribution, Industry and Infrastructure markets.

In the October-December quarter (Q3FY23), GE T&D India had reported a strong operational performance, despite a fall in revenue. The company's order booking jumped 52.8 per cent to Rs 780 crore from Rs 510 crore in the previous year quarter.

Operating profit grew 75 per cent to Rs 25.24 crore in Q3FY23, against Rs 14.41 crore in Q3FY22. It had reported profit after tax of Rs 4.74 crore, against net loss of Rs 0.10 crore in the year-ago quarter. Sales revenue declined to Rs 780 crore from Rs 910 crore in Q3FY22.

Primarily, this reduction was due to lower backlog resulting from reduced order booking in last couple of years caused by Covid-19 pandemic. However, due to successful project execution and various improvement efforts, profit before tax increased, the company said.

The management said orders for the industry segments such as refineries and data centers continue to grow gradually, adding diversity to the company’s backlog and providing more opportunities for efficiency.

Technical View
Bias: Bullish
Target: Rs 265; Rs 280
Resistance: Rs 215

After almost two years of consolidation the stock has seen a strong breakout on charts. The near-term outlook is likely to remain bullish as long as the stock trades above Rs 215, indicates the weekly chart.
On the upside, the stock could target Rs 265 - 280 range, suggests the monthly Fibonacci chart.

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In case, the stock falls and trades consistently below Rs 215, it could test support at its 20-DMA (Daily Movng Average) placed around Rs 190-odd level.
(With inputs from Rex Cano)

GE T&D India

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First Published: May 18 2023 | 11:32 AM IST

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