Hitachi Energy India Limited

Industrials — Electrical Equipment & Parts · NSE

₹28,990.00+₹220.00 (+0.76%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Hitachi Energy India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hitachi Energy India Limited offers products, projects, and services for electricity transmission and related activities in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees2,777

Annual revenue₹7,918 Cr

How does it make money?

Turns over ₹7,918 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 2,777 employees supports ₹2.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.85 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 24.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 38.5% and earnings to grow about 48.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+38.5%

Est. earnings growth+48.3%

Analysts18

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +83% while net margin moved +476% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+83%

Margin effect+476%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 112.3x is demanding — it needs sustained high growth to justify
✓ P/E is 64% below its own historical median of 310.0x — cheap by its own standards
✗ P/B of 24.96x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

112.3x

3Y Median

310.0x

40 monthly readings · mean 309.9x · range 130.8x–582.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 64% below its 3y median of 310.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 26% above the peer median of 88.8x.

vs. its own history

Cheap

310.0x median over 40 months · -64%

vs. sector peers

Expensive

88.8x median of 3 peers · +26%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

84.6x

PEG

0.94

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 5.8% to 18.9% over 3 years.
Debt is being paid down
Total debt is down 74% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 7.7% to 19.1%.
Return on capital is rising
ROCE has improved from 13.5% to 24.9%.
High return on capital employed
ROCE of 24.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 1.66x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 5.8% to 18.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 74% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 64% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.66x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 26% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 17% a year✓ 22.2% CAGR
Latest reported year was 68.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹735 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 1 neutral · 3 weak

Market Cap

₹1.29 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

112.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

24.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹258.1

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

24.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.66x

High

High leverage

Revenue Growth (YoY)

68.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

123.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.03%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹735 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

57.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

12.6%

Good

Strong bottom-line conversion

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30889.0 / 32229.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,335 Cr	₹5,096 Cr	₹6,224 Cr	₹7,918 Cr	+22.2%
EBITDA	₹252 Cr	₹356 Cr	₹615 Cr	₹1,497 Cr	+81.2%
EBITDA Margin	5.8%	7.0%	9.9%	18.9%	—
PAT (Net Profit)	₹94 Cr	₹164 Cr	₹384 Cr	₹988 Cr	+119.1%
EPS	₹22.16	₹38.64	₹90.36	₹221.63	+115.5%
ROE	7.7%	12.0%	9.1%	19.1%	—
ROCE	13.5%	18.9%	13.1%	24.9%	—
Total Debt	₹334 Cr	₹214 Cr	₹88 Cr	₹86 Cr	-36.4%
Free Cash Flow	-₹7 Cr	₹163 Cr	₹1,365 Cr	₹735 Cr	—

🟢 Revenue has grown at 22.2% a year over 3 years.

🟢 EBITDA has grown at 81.2% a year over 3 years.

🟢 EBITDA Margin has risen from 5.8% to 18.9% over 3 years (+13.1 pts).

🟢 PAT (Net Profit) has grown at 119.1% a year over 3 years.

🟢 EPS has grown at 115.5% a year over 3 years.

🟢 ROE has risen from 7.7% to 19.1% over 3 years (+11.4 pts).

🟢 ROCE has risen from 13.5% to 24.9% over 3 years (+11.4 pts).

🟢 Total Debt has shrunk at 36.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹735 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,044 Cr

Total Liabilities

₹6,868 Cr

Cash & Equivalents

₹2,672 Cr

Operating Cash Flow

₹1,245 Cr

Capex

-₹510 Cr

Shareholding (proxy)

Institutional Holding

10.1%

Insider Holding

71.5%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

21 Aug 2026

Analyst Consensus

Recommendations

13 Buy · 6 Hold · 2 Sell

Target Price (Mean)

₹37,221.76

+28.4% vs CMP

Target Range

₹30,100 – ₹49,936

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

The Bet Hitachi Energy India Holders Made

Simply Wall Street, 14 Oct

Post Q4 Showdown: Hitachi Energy vs Siemens Energy, Which Is The Best Power Infra Stock in 2026 For Investors?

Goodreturns, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Netweb, ESDS Software, Hitachi Energy India, other AI-related stocks fall up to 6% amid global AI selloff

Moneycontrol.com, 15 Oct

Hitachi Energy India Ltd Hits Intraday Low Amid Price Pressure

MarketsMojo, 16 Oct

Chris Wood is betting on this capital goods stock for his India long-only portfolio

CNBC TV18, 25 Sept

Hitachi Energy, E2E Networks, Anant Raj, other AI-linked stocks slide up to 5% as global AI rout hits Indi

The Economic Times, 13 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑