1. At a Glance
GE Power India has had more comebacks than Bollywood heroes in the 80s. Once a dependable EPC player in power generation equipment, it went through a financial blackhole of losses, only to shock the market with ₹203 cr PAT in FY25 and a 249% TTM profit growth. Trading at a dirt-cheap P/E of ~10.4, it’s nearly debt-free, and has a ₹2,119 cr market cap. The catch? Sales growth over 5 years is -15.6%, debtor days are an eye-watering 409, and operating margins still wander in negative territory. It’s like a cricketer who scores a triple century after a decade of ducks – applause, but also scepticism.
2. Introduction
If you’ve ever stood in front of a thermal power plant and thought, “Someone had to build that monster,” chances are GE Power India had a hand in it. This isn’t the GE of your American coffee machine – this is the EPC giant specialising in boilers, turbines, generators, air quality systems, and flue-gas desulphurisation (FGD) units.
Its story in the last decade has been brutal – sales down from ₹3,343 cr in FY21 to just over ₹1,047 cr in FY25 – but the FY25 turnaround came via cost control, a gush of other income (₹312 cr), and debt reduction. The real question for investors: is this an actual turnaround or just an accounting magic trick?
3. Business Model (WTF Do They Even Do?)
GE Power India operates in three main verticals:
- Core EPC Equipment – Boilers, turbines, generators for thermal/hydro plants.
- Service Upgrades – Life extension & efficiency upgrades for existing power units.
- FGD Systems – Flue-gas desulphurisation plants for pollution
- control in thermal plants.
Their revenue depends heavily on large government & PSU orders, with NTPC, BHEL, Siemens, and state utilities as key clients. It’s a classic project-based revenue model: lumpy, cyclical, and vulnerable to policy whims.
4. Financials Overview
Fresh P/E calculation:
Latest quarterly EPS ₹24.43 → Annualised = ₹97.72
CMP ₹315 ÷ ₹97.72 ≈ P/E ~ 3.22 (the 10.4 displayed is based on trailing FY25 EPS; annualising the recent quarter makes it absurdly cheap – though it’s likely an exceptional quarter).
FY25 (Consolidated):
- Revenue: ₹1,047 cr (flat YoY)
- EBITDA: -₹50 cr (negative OPM -5%)
- PAT: ₹203 cr (vs ₹-171 cr in FY24)
- ROCE: 6.09%, ROE: 105% (boosted by low equity & one-time income)
Growth track:
- Sales CAGR 5Y = -16%
- PAT CAGR 5Y = 24% (because of FY25 spike)
Commentary: Profitability revival is mainly thanks to “other income” and cost cuts – not operational dominance.
5. Valuation – Fair Value Range
- P/E Method:
EPS FY25A = ₹30.20 → Sector fair multiple = 15x–20x → FV = ₹453 – ₹604. - EV/EBITDA Method:
EV ≈ ₹2,119 cr – ₹308 cr cash = ₹1,811 cr
EBITDA
