GE Vernova T&D Ltd shares, which are up 143 per cent in the past one and 3,508 per cent in the past five years, now trade at around 70 times estimated FY27 earnings. Yet the stock has received upward revisions in target prices from a handful of brokerages, as the company's Q4 results beat Street estimates, especially on the margin front. While base ordering was weak in Q4 and can remain weak in the near term, brokerages stayed positive on the stock's prospects. The targets on the stock suggests up to 19 per cent potential upside. 

GE Vernova T&D Ltd is riding the global energy transition wave, said Emkay Global, as it maintained 'Buy' and a revised target of Rs 4,750 from 3,900 earlier.

GE Vernova T&D India deals in power transmission and distribution business. MOFSL said the company expressed confidence in securing Rs 7,000-8,000 crore of base orders from the domestic market (excluding HVDC) and expects inflows to improve from export markets too, mainly from the US. 

For the quarter, GE Vernova T&D's margin performance stood strong in the quarter at 30 per cent, adjusted for MTM loss. 

"We expect GVTD to sustain strong margins, aided by healthy revenue mix, adequate variable pricing clause and operating leverage benefits. We increase our estimates by 7 per cent/8 percent for FY27/28E to bake in higher margins and roll forward our valuation to June 2028 estimates. We reiterate BUY with a revised target of Rs 5,200 (Rs 4,750 earlier)," MOFSL said.

Nuvama is concerned over the prevailing valuations.

While it believes GE Vernova T&D remained a stellar growth story, with an expected 26 per cent EPS growth and 37 per cent RoE over FY26–28E, it finds the current valuation stretched. 

"CMP implies 30 times our FY30 bull case EPS, which captures option value of an additional HVDC. We raise FY27E/28E EPS by 17 per cent/15 per cent factoring an EBITDA margin of 27 per cent over FY27–28E (versus guidance of mid-20 per cent). Maintain ‘HOLD’ with a revised target of Rs 4,850 (Rs 3,870 earlier), at 60x FY28E EPS," it said. 

Emkay said GE Vernova T&D India's balance sheet remained healthy with net cash balance of Rs 2,500 crore, supported by CFO generation of Rs 1,580 crore during the year. 

"A healthy order book mix, sturdy tender pipeline, and focus on margin improvement provide confidence in GVTD’s robust earnings growth trajectory. Higher export visibility further adds comfort to our positive view," it said.

This brokerage revised its target on the stock to Rs 4,750 from 3,900), valuing the stock at 60 times FY28 earnings per share.