GE Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
GE Power India Limited (GVPIL) is navigating a pivotal phase marked by a strategic shift towards high-margin services, supported by a robust order book and a disciplined turnaround strategy. Management's focus on operational efficiency and the proposed demerger of the underperforming Durgapur facility are critical developments that aim to streamline operations and enhance profitability. The company's strong momentum in order bookings, particularly in the 'other oOEM' segment, underpins Vista's revenue growth expectations, despite the current moderation in overall growth rates. However, execution risks remain, particularly due to recent leadership turnover and high customer concentration, which could impact margins and operational stability. The macroeconomic environment, characterized by mixed signals on inflation and liquidity, adds complexity to GVPIL's outlook. Over the next 12-24 months, key opportunities include expanding international markets and leveraging parent company support, while watchpoints include the successful execution of the demerger and maintaining leadership stability. Vista's forecast reflects these dynamics, with a cautious stance on valuation amid expected upside driven by strategic execution
Why We Like This Stock
- Strong order booking growth in core services, particularly in the 'other oOEM' segment, supports revenue expectations
- The proposed demerger of the Durgapur facility is expected to eliminate recurring losses and streamline operations
- Management's focus on operational efficiency and leveraging parent company support enhances the potential for sustainable profitability
Things To Watch Out For
- Recent turnover in key executive roles raises concerns about leadership stability and execution risk
- High customer concentration could impact revenue stability and margin performance
- Moderating revenue growth and pressure on margins may challenge overall financial performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,039 | 1,047 | 1,269 | 1,265 | 1,372 |
| Profit Before Tax (Cr.) | -136 | -27 | 356 | 398 | 420 |
| PBT Margin | -13.1% | -2.6% | 28.1% | 31.5% | 30.6% |
| Net Profit (Cr.) | -136 | 203 | 350 | 299 | 315 |
| Earnings Per Share | -20.2 | 30.2 | 52.1 | 44.4 | 46.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
GE Power India Limited engages in the engineering, procurement, manufacturing, construction, maintenance, and servicing of power plants and power equipment in India and internationally. The company offers steam power services. It also provides automation and control; boilers; mills; and air quality control systems. The company serves power generating utilities, cement, iron and steel, chemical and fertilizer, oil and gas, pulp and paper, power/civil and construction/industrial industries. GE Power India Limited was incorporated in 1992 and is based in Noida, India. GE Power India Limited operates as a subsidiary of Ge Steam Power International Bv.