1. At a Glance
Hitachi Energy India, the transformer titan, is powering up profits and orders, but with a stock price trading at 19x book value and 213x earnings, investors are wondering—are they buying electricity or enlightenment?
2. Introduction with Hook
Imagine a transformer so powerful it converts P/E ratios into cult status. That’s Hitachi Energy India. It’s not just a power equipment maker—it’s a voltage-flavored religion for capital goods believers.
- Stock P/E? 213x. Yes, higher than an EV scooter startup.
- EPS FY25? ₹86.
- Market Cap? ₹82,169 Cr—more than BHEL, even with 1/10th the size.
This is not just energy—it’s brand equity, Japan-style.
3. Business Model (WTF Do They Even Do?)
Ex-ABB, now under Hitachi’s wing. The company provides:
- Transformers (like Optimus Prime, but for substations)
- Gas-insulated switchgear (GIS)
- High Voltage Direct Current (HVDC) solutions
- Grid Automation & Digital Substations
- Service & lifecycle management
Their clients? Power Grid, NTPC, SEBs, industrial giants—and now the energy transition crowd (hello renewables).
4. Financials Overview
| ₹ Cr | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | 4,884 | 4,469 | 5,237 | 6,385 |
| Net Profit | 203 | 94 | 164 | 384 |
| EPS ₹ | 47.99 | 22.16 | 38.64 | 86.15 |
| OPM % | 7% | 6% | 7% | 9% |
Boom Alert:
134% TTM profit growth. A silent, profitable current flowing under boring power infra.
5. Valuation
- CMP: ₹18,435
- EPS FY25: ₹86.15
- P/E: 213x
- Book Value: ₹945 → P/B = 19.5x
- Dividend Yield = 0.03% (LOL)
Method 1: P/E-based (target 60–80x normalized P/E)
FV = ₹5,100 – ₹6,800
Method 2: EV/EBITDA (TTM EBITDA ~₹596 Cr, EV ~₹80,000 Cr)
EV/EBITDA = 134x. Normal range: 20–30x → FV = ₹3,500 – ₹5,250
Fair Value Range: ₹3,500 – ₹6,800
CMP ₹18,435 = You’re paying for prestige, not profits
6. What’s Cooking – News, Triggers, Drama
- Jun 2025: Wins Power Grid contract for 765 kV transformers
- ₹6,384 Cr sales in FY25, up 22%
- OPM up to 13% in Q4FY25 – operational mojo improving
- Dividends announced – ₹6/share, don’t spend it all at once
- Hitachi owns it 100% globally now. Tech transfer + global visibility = bullish narrative
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹9 Cr |
| Reserves | ₹4,205 Cr |
| Borrowings | ₹88 Cr |
| Other Liabilities | ₹4,311 Cr |
| Total Assets | ₹8,613 Cr |
| Fixed Assets | ₹717 Cr |
| CWIP | ₹90 Cr |
| Other Assets | ₹7,807 Cr |
Takeaway:
Near debt-free. Solid reserves. Balance sheet = boring in the best way.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹5 Cr | ₹-12 Cr | ₹84 Cr | ₹77 Cr |
| FY24 | ₹252 Cr | ₹-89 Cr | ₹-199 Cr | ₹-35 Cr |
| FY25 | ₹1,494 Cr | ₹-110 Cr | ₹2,295 Cr | ₹3,679 Cr |
Key Insight:
Suddenly generating cash like a fintech. FY25 CFO of ₹1,494 Cr is 4x net profit—possibly big advances from Power Grid deals?
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 13% | 18% | 19% |
| ROE % | 6.5% | 12.2% | 13.8% |
| OPM % | 6% | 7% | 9% |
| EPS ₹ | 22.16 | 38.64 | 86.15 |
| P/E | NA | 477 | 213 |
Verdict:
ROE finally >12%. But at 213 P/E, market’s expecting Tesla-level margins on transformers.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales | 4,884 | 4,469 | 5,237 | 6,385 |
| Expenses | 4,560 | 4,218 | 4,878 | 5,789 |
| Operating Profit | 323 | 250 | 359 | 596 |
| OPM % | 7% | 6% | 7% | 9% |
| Net Profit | 203 | 94 | 164 | 384 |
Profit nearly 4x in 2 years. Margin discipline improving—clearly, transformers are transforming.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE % | OPM % | EPS | Sales ₹ Cr |
|---|---|---|---|---|---|---|
| ABB India | ₹5,608 | 63 | 38.7% | 18.9% | ₹88 | ₹12,267 |
| Siemens India | ₹3,147 | 60 | 23.6% | 12% | ₹53 | ₹17,506 |
| CG Power | ₹677 | 113 | 37.5% | 13.3% | ₹24 | ₹9,908 |
| Hitachi Energy | ₹18,435 | 213 | 19.1% | 9.3% | ₹86 | ₹6,384 |
Verdict:
Margins < peers, valuation > everyone. Hitachi tax is real.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2025 |
|---|---|
| Promoter (Hitachi) | 71.31% |
| FIIs | 7.19% |
| DIIs | 10.27% |
| Public | 11.20% |
| No. of Shareholders | 92,331 |
- FII stake up from 3.5% to 7.2%
- DII stake rising too
- Retail barely gets a bite—supply’s tight, hype’s infinite
13. EduInvesting Verdict™
Hitachi Energy is the closest thing India has to a transformer mafia—high-tech, high-moat, and high-P/E. If ABB is the elegant old money, Hitachi is the mysterious expat with deep pockets and no discounts.
At 213x earnings, you’re not buying a company—you’re buying belief.
Still… with ₹6,385 Cr sales, 19% ROCE, global backing, and a transformer supercycle in progress—it might just work.
Metadata
– Written by EduInvesting Research Desk | July 15, 2025
– Tags: Hitachi Energy India, ABB Power Grids, Transformers, Power Grid Orders, Capital Goods, High P/E Stocks, Electrification, Grid Infra, Utilities Stocks
