Power Transmission Could Be Next Big Theme After Railways, Defence Rally, Says SEBI RA Sumesh Guleria
Synopsis
The analyst said growing government investment in the sector is already boosting order books and revenues for companies, attracting increasing attention from smart investors.
After the strong rally in the railway and defence sectors, fuelled mainly by government initiatives, smart money is now eyeing power transmission as the next big opportunity.
SEBI-registered analyst Sumesh Guleria said the sector’s importance lies in its ability to deliver clean energy from generation hubs to consumption centres, citing examples such as solar power generated in Rajasthan and wind energy thriving in Gujarat that must be transmitted to far-off states and industries.
Rising Bet On Power Transmission Sector
He said the Government of India has laid out plans to invest ₹9 lakh crore in power transmission between 2022 and 2032.
The government will spend ₹4.25 lakh crore until 2027, and another ₹4.75 lakh crore will be set aside for the next five years.
The money will be spent on transmission lines, which consist of towers and cables, substations, along with transformers and equipment associated with them, and high-voltage direct current lines used for long-distance and efficient transmission of power.
According to the analyst, this large-scale push is already translating into a surge in order books and revenues for companies operating in the sector.
Who Stands To Benefit?
He said the theme is gaining traction among investors, with key listed players including Siemens, Hitachi Energy, GE Vernova, Transrail Lighting, and Transformers and Rectifiers India Ltd (TRIL).
Guleria advised keeping an eye on this space, as power transmission could become the next major theme driving market returns.
Year to date, Siemens has fallen 8.4%, Hitachi Energy India is up 35.8%, GE T&D India has gained 40.8%, Transrail Lighting has advanced 40.3%, and Transformers and Rectifiers (India) has declined 15.1%.
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