Sell Hitachi Energy; target of Rs 18000: Motilal Oswal

Motilal Oswal is bearish on Hitachi Energy has recommended sell rating on the stock with a target price of Rs 18000 in its research report dated November 08, 2025.

Broker Research

November 12, 2025 / 20:56 IST

Sell

26 Aug, 2025 12:21

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Motilal Oswal's research report on Hitachi Energy

Hitachi Energy’s 2QFY26 results beat our estimates on the back of a sharp recovery in EBITDA margins and higher other income. Order inflow was healthy for the quarter, and the bid pipeline also remains strong for the company. Over the last few quarters, we note that the company’s order book cycle is turning longer but margin improvement is now visible. The company’s capacity expansion too will help meet the upcoming demand across segments. We increase our estimates by 12%/5% for FY27/28 to bake in increased margin, capex and other income and roll forward our TP to INR18,000. The stock is currently trading at 103x/78x/62x P/E on FY26E/27E/28E earnings. We reiterate our Sell rating on the stock on account of pricey valuations. Our estimates bake in 29% revenue CAGR and 63% PAT CAGR over FY25-28 and an implied target multiple of 60x on two-year forward earnings.

Outlook

The stock is currently trading at 102.7x/78.4x/62.4x P/E on FY26E/27E/28E earnings. We reiterate our Sell rating with a revised TP of INR18,000 (vs. INR16,500 earlier) based on 60x two-year forward earnings.

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