Electrical Equipments/HVDC — sector analysis & key numbers

Companies

6

Total market cap

₹4,33,815 Cr

Relative strength

39.1

RRG quadrant

consolidation

Weeks in streak

12

In Stage-2 uptrend

6 of 6

Above 200-DMA

6 of 6

Beating NIFTY 500

5 of 6

Latest-quarter revenue

₹9,751 Cr

Latest-quarter profit

₹1,221 Cr

Aggregate P/E

78.0×

Valuation percentile

67th of its own history

Sector wind

strong tailwind

Data as of

1 July 2026

The research read on Electrical Equipments/HVDC: mid-way through a confirmed up-move.lifecycle_bucket

All three streams point the same way — a structurally winning sector mid-acceleration. CURVE: earnings-led, profit ~27% CAGR over 6y, OPM doubled to 13.2-16.6%, PE de-rating 147→78 even as price hits an all-time-high 590 — the deterministic ground confirms earnings-led (profit +590% versus PE -47.1%), the durable winner pattern. QUAL: a strong tailwind / worth studying deeper on the HVDC/grid super-cycle with confirmed order-book-to-billing inflection, now read as expansion with margins still climbing — not yet a margin peak. SOCIAL: 87/+22 rising, narrating the identical power-capex thesis. But two disciplined cautions cap this below euphoria. (1) The deterministic cyclicality verdict is peak margin value trap — at mid-cycle margins (versus OPM at the 91st percentile) the normalized PE jumps from the 41st to the 84th percentile (Δ-43); the rich PB (20.32 versus a 2.03 minimum) gives NO value cushion, in tension with the strategy's depressed-priority mandate. (2) capital_flows reads entering but the combined deterministic read is capacity risk — capex +232.8% YoY, gross-block +29.9%, CWIP +39.9% = a supply flood that can compress the order premium late-cycle. The profit lift is also concentrated — GVT&D 41.9%, Hitachi Energy 30.4%, Siemens Energy 13.9% = ~86% of the move — and breadth is unmeasured. Net: a high-quality earnings-led momentum continuation — broken out mid-move, scored on evidence — held to the low-70s by the no-value-cushion + supply-flood + broad-only social, but the expansion cycle read and still-climbing margins keep it the strongest setup of the batch.synthesis

What would change this view: Margins roll from the 91st-percentile peak before the order books finish billing — if aggregate OPM mean-reverts toward the 6.3% mid-cycle while a Chinese-import reversal compresses pricing, the normalized PE jumps to the 84th percentile on a 20x PB with no value cushion, converting the earnings-led winner into a peak-margin trap. Conversely, the expansion cycle read holding — order-to-billing still accelerating with margins NOT yet peaking — would justify riding the continuation higher.would_change_my_mind

Hyper-growth HVDC/FACTS/BESS supercycle — order books converting to billing at 28-250% YoY as supply chains normalize, with EBITDA margins expanding into the high-20s.one_line_thesis

Research view from 2026-06-27

Across the 5 largest constituents with research timelines, 3 carried trackable guidance: 8 beats, 0 met, 3 misses against what management said.guidance_pairs

Recurring drivers named across multiple constituents: Operating Leverage Inflection (3 names); Order Book / Contract Wins (2 names).catalysts_grid

Research view from 2026-06-27

6 of 6 constituents are in Stage-2 price uptrends, 6 trade above their 200-day averages, and 5 are beating the NIFTY 500 on relative strength.stageabove_dma200rs_mansfield

Over the trailing ~20 weeks, the share of constituents above the 200-day line moved from 67% to 100% — participation is widening.breadth_series

Sector relative strength stands at 39.1, in the consolidation quadrant of the rotation map, with relative strength falling over a 12-week streak.current_rsquadrant

Recent stage changes: SKIPPER (stage 4→2).stage

Data as of 2026-07-01

Top performers by 1-year price return: GE Vernova T&D India Ltd (+119.3%), Hitachi Energy India Ltd (+71.6%), Quality Power Electrical Equipments Ltd (+65.1%), Siemens Energy India Ltd (+25.8%), Skipper Ltd (+12.6%).price

Data as of 2026-07-01

In the latest reported quarter (2026-03), constituents together booked ₹9,751 Cr of revenue (+43% year-on-year) and ₹1,221 Cr of profit (+71.5%).revenuepat

On the annual arc, aggregate profit grew 231% to ₹1,718 Cr in 2025.pat

Data as of 2026-06-27

Sector profit moved from ₹519 Cr to ₹1,718 Cr (+231% year-on-year) — the decomposition attributes the larger share to the margin side (costs and pricing).pat

Sector revenue moved from ₹13,372 Cr to ₹20,219 Cr (+51.2% year-on-year).revenue

Aggregate operating margin moved 8.4%→13.2% year-on-year (+480 basis points).opm

The aggregate P/E moved from 147.4× to 78× (-47.1%) while sector profits moved +590% — earnings led the multiple — the durable pattern.pe

Research view from 2026-06-27

Ownership: institutional (FII+DII) holdings moved +0.05 percentage points over four quarters; promoter stakes moved +0 points over two.fii_dii_delta_4qpromoter_delta_2q

Constituents spent ₹5,322 Cr on capex in the trailing twelve months (+232.8% year-on-year), with gross block growing +29.9%.capex_ttm_sum_crcapex_yoy_pct

On the deterministic capital-flow read, capital is entering this industry.read

Research view from 2026-06-27

The sector trades at an aggregate P/E of 78.02× against a range of 18.67–271.16× over its 40-quarter history.pe

The median constituent sits at the 67th percentile of its own 10-year valuation range.percentile

Aggregate operating margin (13.2%) sits at the 100th percentile of its own annual history — a cheap-looking multiple on near-peak margins is only cheap if the margins hold.opm

Data as of 2026-06-27

6 companies make up this sector, led by Hitachi Energy India Ltd at ₹1,51,390 Cr of market value.constituents

Data as of 2026-07-01

A breakdown is NOT underway: 100% of constituents still trade above their 200-day averages.breadth_series

Data as of 2026-07-01

Straight answers from the data