MarketsEconomic TimesJun 4, 2026· 1 min read
Citi Initiates Coverage on Indian Power Equipment Makers, Citing Growth Drivers
Citi Research has initiated coverage on four Indian electrical equipment manufacturers, assigning 'Buy' ratings to three firms and a 'Neutral' to one, citing strong domestic transmission buildout and HVDC adoption as key growth drivers. The bank projects up to 33% upside for some of these stocks, driven by OEM and export opportunities.
Citi Research has commenced coverage on four Indian electrical equipment manufacturers, projecting significant upside potential for several firms. The investment bank anticipates a robust domestic transmission infrastructure expansion and increased adoption of High-Voltage Direct Current (HVDC) technology as primary catalysts for sector growth.
Three companies received 'Buy' ratings from Citi: Hitachi Energy India, GE Vernova T&D India, and CG Power and Industrial Solutions. The firm's analysis highlighted substantial Original Equipment Manufacturer (OEM) opportunities for these companies, alongside promising export potential, positioning them for considerable revenue growth. Price targets indicate an upside of up to 33% for some of these stocks.
Siemens Energy, another major player in the sector, was initiated with a 'Neutral' rating. While acknowledging the company's market presence, Citi's assessment suggests a more moderate near-term growth trajectory compared to its peers within the Indian market. The overall outlook for the sector remains positive, underpinned by government initiatives in power infrastructure and the ongoing energy transition.
Analyst's Take
While Citi's coverage highlights domestic infrastructure spend, the 'export potential' mentioned could foreshadow increased competition for global players. Furthermore, the HVDC emphasis points to a future grid increasingly focused on long-distance, efficient power transmission, which may impact the profitability of traditional AC transmission component manufacturers over the longer term. The timing of this coverage suggests Citi may be positioning clients ahead of anticipated government infrastructure budget allocations in the coming fiscal year, potentially leading to a pre-emptive run-up in these stocks.
