200% CAGR over 5 years: A Stock Market Performance Review

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ABOUT THE COMPANY

GE Vernova T&D India Ltd. Specializes in manufacturing of power generation and distribution equipment including transformers, switchgear and HVDS systems for modern power grid. Company had spent a century involved in the power transmission and distribution business. Company provides digital solutions through which 50% of the India’s power flow is monitored. Company clientele includes big players like NTPC, Adani Transmission, Hindalco, TATA Power, BHEL, Amazon, Powergrid, NHPC, Reliance Industries, JSW Steel, etc. As for FY25 company has an order book of Rs 9,836 Crores which is approx. twice the revenue generated by the company in FY24-25 i.e. Rs 4,292 Crores. As of September 2025, 51% of the company is held by Grid Equipments Private Limited and its related enterprises.

Quick peer context:

Company NameMarket CapitalizationReturn On Capital EmployedReturn On Equity
Siemens₹ 1,13,780 Crores15.83 %11.81 %
                A B B₹ 1,11,035 Crores    38.65 %  28.42 %
GE Vernova T&D₹ 76,853 Crores54.74 %40.35 %

GE Vernova T&D market capitalization categorizes it as a mid-to-large-cap stock within the industrial and electrical equipment space. Company’s market cap growth rate has been aggressive throughout the years due to its robust order book and improving operating profit margin.

ROCE and ROC of GE Vernova T&D are both better when compared to its competitors, which shows that the management is successful in generating returns on the capital employed and making best use of its resources.

Analysis of the Financial Statements

Revenue Growth Trend

Sales of the company have remained steady over the years, but the management has been able to reduce its cost and make the business process cost efficient by improving the operating profit margin over the years.

March 2020March 2021March 2022March 2023March 2024March 2025
3,159 CRORES3,452 CRORES3,066 CRORES2,773 CRORES3,186  CRORES4,292  CRORES

Profitability & Margin Analysis

Operating profits margin of the company improved significantly over the years from being negative in 2020 to 24% in March 2025. The company’s management had focused on cost efficiency and achieved the same reflecting it through OPM.

March 2020March 2021March 2022March 2023March 2024March 2025
-6%5%-3%4%10%19%

Balance Sheet Strength

Total Assets of the company have been increasing steadily over the years, out of the total asset’s majority are covered by trade receivable and other assets items lying with the company. Fixed assets have decreased over the years, which is concerning because it’s an equipment manufacturing company and fixed assets are required for manufacturing and it’s hard to fulfill a robust order book of Rs 9,836 Crores. Management should focus on making capital investments to fulfill future needs.

March 2020March 2021March 2022March 2023March 2024March 2025
4,154 Crores4,069 Crores3,767 CRORES3,679 CRORES3,584 CRORES4,234  CRORES

Debt Profile

Company is working on no debt profile, which is justified as no capital expenditure is being made.

The reserves and surplus have grown sharply, indicating that the company has potential to expand its production capacity in the future.

March 2020March 2021March 2022March 2023March 2024March 2025
599 CRORES316 CRORES226 CRORES273 CRORES42 CRORES35 CRORES

Cash Flow Health

The Cash from Operating Activity has been fluctuating over the years but has remained positive in the past 2 years. Cash flow from investing activity has been negative due to inter corporate deposits. Cash conversion cycle of the company is 79 days, which is much higher than its competitors’.

Comparative Data with Key Competitors (Siemens India, ABB India)

Parameter  GE Vernova T&D IndiaSiemens IndiaABB India
Sales Growth (5-Yr CAGR)  6%12%11%
Operating Profit Margin  24%12%16%
Debt-to-Equity  0.00x0.01x0.01x

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

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