GVTD is well positioned to capitalize on structural growth in the power transmission sector, supported by strong prospects across both its domestic and export businesses. This is underpinned by: 1) ~Rs10bn of capacity expansion planned through FY28, which should enhance its ability to cater to growing demand; 2) strong support from its parent (GE), providing consistent access to new technologies and enabling faster localization for the Indian market; 3) a robust balance sheet, with a net cash position of Rs29.3bn as of 1QFY27-end and healthy cash-flow generation averaging ~Rs10bn over the past 3 years; and 4) favorable working-capital dynamics, with NWC maintained at ~50 days over the last 3 years. Collectively, these factors provide GVTD with financial flexibility, technological edge, and capacity readiness, which we believe will help the company deliver earnings CAGR of 25% over FY26-29E. We retain BUY and raise TP by ~7% to Rs5,300 from Rs4,950.
