Growth potential, earnings factored in GE Vernova's valuations

THE COMPASS

- DEVANGSHU DATTA

GE Vernova T&D (GEVTD) has bagged a large order from Adani Energy Solutions for the Khavda phase III project in Gujarat with an overall project size at ₹12,000 crore.

The exact order size is not known, but it is estimated to be around ₹8,000 crore-₹10,000 crore. This is very significant given GEVTD's existing order book was around ₹13,100 crore and FY26 estimated sales ₹5,500 crore-₹6,000 crore.

Assuming a 3-4 year execution profile, it could amount to 20-30 per cent upside to FY28-29 estimated earnings. There are two more line commutated converter high-voltage direct current (LCC HVDC) orders expected over the next 12-18 months, with only Hitachi Energy and GVTD as contenders as Siemens Energy is only in the voltage source converters segment. Hence, there may be another big boost to future growth prospects and earnings visibility. This project would evacuate 2.5 GW of renewable energy from Khavda to South Olpad via a 600 km transmission line.