Hitachi Energy’s additional capex excites, but valuations are steep

Hitachi stock trades at a whopping 115 times FY27 estimated earnings, as per Bloomberg data, making it one of the most expensive stocks in the capital goods sector.

Q4FY26 revenue rose by as much as 46% to ₹2,754 crore, but Ebitda growth was faster at 75% to ₹416 crore owing to relatively slower rate of growth in staff costs and other expenses. Ebitda margin expanded by 248 basis points to 15%, even as gross margin contracted 30 bps to 37% due to an adverse product mix, given the increased share of lower-margin HVDC revenue.

 

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