Key Takeaways
May 3, 2026 · 2 min read · By Rishabh Bhardwaj
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AI-assisted, human-reviewed · Our editorial standards
Motilal Oswal has started coverage on transmission and distribution (T&D) equipment stocks, issuing 'Buy' ratings on CG Power, GE Vernova T&D, and Siemens Energy as a spending surge in power infrastructure drives demand for transformers and high-voltage direct current (HVDC) projects.
India's power grid is under pressure. Rising electricity consumption, the push to connect more renewable energy sources, and the need to upgrade aging infrastructure are together forcing utilities and the government to spend heavily on grid equipment. Transformers are the backbone of this buildout, every new substation, solar park connection, or industrial corridor needs them. HVDC technology, which carries electricity over long distances with lower losses than conventional lines, is increasingly central to inter-state and cross-region transmission projects.
Motilal Oswal expects this capital expenditure cycle to directly lift revenues at the companies it is now covering. CG Power, GE Vernova T&D, and Siemens Energy are all established suppliers in this space, with manufacturing capacity and existing relationships with power utilities and grid operators.
A brokerage initiating coverage with a 'Buy' rating signals that its analysts believe the stock will outperform over the next 12 months. Motilal Oswal has also set price targets for each company, though specific target figures were not detailed in the source material. The initiation itself tends to attract institutional attention, particularly when it covers multiple names in a sector simultaneously, it signals a sector-level thesis, not just a single stock call.
The broader T&D equipment sector has already seen re-rating over the past two years as order books at domestic manufacturers swelled. Investors are now watching whether revenue conversion and margin delivery match the order inflow story.
Key things to watch: order book growth and execution timelines at each company, government capex allocation for grid upgrades in upcoming budgets, and whether HVDC project tenders accelerate as planned. Any slowdown in utility spending or project delays could pressure valuations, which have already moved up significantly in the sector.
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