Hitachi Energy India Reclaims Rs 12,000 Mark After Securing Rs 790 Crore Contract

On Tuesday, the share price of Hitachi Energy India reclaimed the important psychological mark of Rs 12,000 per share, trading higher by almost 3.5%. This surge propelled the company’s market capitalisation beyond the 50,000 crore mark. The stock has rallied by 11.3% in June, and in 2024, it has more than doubled investors’ wealth, climbing over 127.5%.

What’s Driving the Rally?

The primary catalyst for this impressive rally is a substantial order received by Hitachi Energy India. The company secured a contract worth approximately Rs 790 crore from Hitachi Energy Australia Pty Ltd, a fellow subsidiary. This order pertains to the execution of Project Marinus Link, involving Voltage Source Converter (VSC) High Voltage Direct Current (HVDC) links between Tasmania and Victoria. The project includes the supply of specific equipment for the Burnie Converter Station and Latrobe Valley Converter Station. The order is scheduled for execution over four years.

Marinus Link: A Nationally Significant Project

Marinus Link Pty Ltd selected Hitachi Energy to supply HVDC Light® VSC stations for this crucial project. Equipment delivery will be managed from the company’s factory in India, highlighting the strategic importance of Hitachi Energy India in the global energy landscape.

National Energy Policy and Future Prospects

The Marinus Link project is not just significant for Hitachi Energy but also for Australia’s energy ecosystem. It underscores the company’s pivotal role in supporting Australia’s energy infrastructure. Furthermore, as per the National Energy Policy 2023-24, there is an expansion plan for the transmission circuit and network. The High Voltage Direct Current (HVDC) circuit is planned to increase by 4300 ckm from March 2022 to March 2027, growing to 23,675 ckm with a carrying capacity of 12,000 MW by 2027.

Conclusion

The substantial order from Australia, coupled with the company’s strategic role in the Marinus Link project, has significantly bolstered investor confidence in Hitachi Energy India. The alignment with national energy policies and future expansion plans further strengthen its position, making it a stock worth watching for future gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.