GE Power
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Vista Outlook
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GE Power India Limited (GEPIL) is strategically pivoting towards its high-margin Services business, which is expected to drive revenue growth and enhance profitability. Management has reported a robust 34% growth in order bookings for core services, indicating strong demand and a positive outlook for cash flow generation. The planned demerger of the Durgapur manufacturing facility aims to streamline operations and eliminate losses, further supporting GEPIL's focus on core competencies. Vista's financial outlook reflects stable revenue growth and improving margins, bolstered by this strategic shift. The company's conservative balance sheet, characterized by low leverage, positions it well for future investments. However, the successful execution of the supply chain transition post-demerger remains a critical watchpoint. Industry dynamics, including a recovering infrastructure sector and favorable government policies, provide a supportive backdrop for GEPIL's growth trajectory. Over the next 12-24 months, key opportunities include expanding international markets and enhancing service offerings, while headwinds may arise from competitive pressures and execution risks associated with the demerger
Why We Like This Stock
- Significant growth in order bookings for core services indicates strong demand and revenue potential
- The demerger of the Durgapur facility is expected to eliminate losses and enhance operational efficiency
- A conservative balance sheet supports financial stability and future growth initiatives
Things To Watch Out For
- Execution risks associated with the supply chain transition post-demerger could impact operational continuity
- Competitive pressures in the infrastructure sector may challenge margin expansion
- Dependence on successful international market expansion poses additional uncertainties
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,039 | 1,047 | 1,269 | 1,267 | 1,479 |
| Profit Before Tax (Cr.) | -136 | -27 | 356 | 459 | 505 |
| PBT Margin | -13.1% | -2.6% | 2805.4% | 36.2% | 34.2% |
| Net Profit (Cr.) | -136 | 203 | 350 | 344 | 379 |
| Earnings Per Share | -20.2 | 30.2 | 52.1 | 51.2 | 56.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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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 boilers, mills, air quality control systems, hydro and gas power systems, and automation and control systems. It also engages in the construction of industrial and non-industrial plants, structures, facilities, and other projects. In addition, the company provides architectural and engineering services; and manufactures steam generators. It serves cement; iron and steel; chemical and fertilizer; oil and gas; and pulp and paper 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 B.V.