Buy GE T&D India, target price Rs 146: ICICI Securities

Buy GE T&D India, target price Rs 146:  ICICI Securities

ICICI Securities has buy call on GE T&D India with a target price of Rs 146. The current market price of GE T&D India Ltd. is Rs 128.95.

GE T&D India Ltd., incorporated in the year 1957, is a Mid Cap company (having a market cap of Rs 3244.11 Crore) operating in Power sector.

For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 1057 Crore, up 20.58 % from last quarter Total Income of Rs 876.63 Crore and up 11.02 % from last year same quarter Total Income of Rs 952.11 Crore. Company reported net profit after tax of Rs 55.92 Crore in latest quarter.

Investment Rationale
Net debt decreased sequentially by Rs2.68bn in Q3FY21 and working capital has improved to 80days. The ordering activity from state government has picked up and green energy corridor tenders are expected to gain traction. Due to the recent stance of the government to encourage localisation, we believe, domestic market share of the company is likely to improve. Given the improvement in growth outlook, reduction in working capital and debt, the brokerage upgrades the stock to BUY from Add.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 0.6 per cent, DIIs 15.3 and public and others 9.1 per cent.

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