Rs 7,578 crore order book and 350 per cent returns: This multibagger electric equipment company delivers robust quarterly results; do you hold it?

Shares of the company gained more than 18 per cent in the last six months.

Hitachi Energy India reported robust Q2FY24 results, with net sales growth of 9.9 per cent to Rs 1,192.22 crore. Operating profit decreased 13.94 per cent, and net profit stood at Rs 24.74 crore, down 33.44 per cent from the previous year's same quarter.

In Q2FY24, received orders worth Rs 1,747.1 crore, up 52 per cent QoQ, driven by transmission projects, data centres, rail, and digital services. Exports accounted for 25 per cent of orders. The order backlog stands at Rs 7,578.9 crore, the highest ever. India's energy demand is poised for substantial growth, necessitating a robust and modern electricity grid. Government support for battery energy storage systems and growth in high-demand sectors like rail and data centres will further drive industry expansion.

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Hitachi Energy India Limited has delivered multibagger returns to its shareholders in the last three years. During this period, the company's share price surged from Rs 968.90 on November 14, 2020, to Rs 4,571.85 on November 08, 2023, representing an increase of over 350% in a three-year holding period.    

Hitachi Energy India Limited, founded in February 2019, offers power grid solutions across the entire power value chain. The company has 25% equity shares traded publicly, while the remaining 75% is held by Hitachi Energy Ltd., a subsidiary of Hitachi Ltd. The company has an ROCE of 12.9%, an ROE of 8.03%, and a market capitalization of Rs 19,373 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.    

Disclaimer: The article is for informational purposes only and not investment advice.