2026 has been a strong year for high-voltage transmission and distribution (T&D) equipment stocks, with Hitachi Energy India, GE Vernova T&D India, Siemens Energy India, and CG Power and Industrial Solutions rising 66%, 34%, 23%, and 35%, respectively, year-to-date (YTD). In comparison, the BSE Capital Goods Index has gained 10% over the same period.
The rally has come at a time when broader markets have been impacted by escalating geopolitical tensions. However, the sector has attracted investor interest amid a widening global supply-demand gap for high-voltage power equipment, including transformers, switchgear, and circuit breakers, as well as strong multi-year order pipelines for companies in both domestic and international markets.
However, the rally in these stocks has recently paused as investors appear to be booking profits amid concerns over elevated valuations.
Nevertheless, domestic brokerage firm 360 ONE Capital Markets said the recent price correction in these stocks has eased concerns over rich valuations, as much of the potential upside had already been priced in, leaving little room for error.
In its latest report, the brokerage has initiated coverage on three companies exposed to the high-voltage power equipment theme: Hitachi Energy India, GE Vernova T&D India, and CG Power and Industrial Solutions.