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GE Power India Ltd: A Turnaround Powerhouse?

~ Sumon Mukhopadhyay.

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Introduction:

GE Power India Ltd (GEPIL) is a seasoned player in India’s power sector, delivering advanced boilers, turbines, FGD (flue gas desulphurisation), and emission-control solutions, alongside a growing services business.

Following the spin-off of its hydro and gas divisions in FY25, GEPIL has emerged leaner, cash-rich, and focused on margin-friendly service growth.

Notably, ace investor Radhakishan Damani holds a ~1% stake, reflecting high-conviction institutional interest. The question is—is GEPIL now investment-grade material?

Why Invest in GE Power India? (CMP: ₹306.70)

🧨Profit Surge:

Turnaround Triumph: From a ₹171 crore loss in FY24, GEPIL delivered a ₹203 crore profit in FY25, with EPS swinging from –₹25.49 to ₹30.20, despite a ~37% dip in revenue.
Margin Boost: Net profit margin jumped from –10.5% to +19.4%, signaling strong operational discipline.

🧨Financial Strength:

Debt-Free Status: With zero long-term debt, a net worth of ₹233 crore, and cash reserves of ₹433 crore, GEPIL enjoys a clean balance sheet.
Recurring Growth: A ~40% rise in core service and upgrade revenues strengthens its annuity-style earnings stream.

🧨Order Book Visibility:

Robust Pipeline: A ₹2,662 cr (~$319 million) order backlog provides revenue visibility into FY26.
New Wins: Total order book exceeds ₹3,400 cr (~$408 million) with fresh contracts from utilities like NTPC and Torrent Power.

🧨Valuation & Investor Interest:

Attractive Valuation: Trading at just ~6.6x book value, the stock remains undervalued Vs its intrinsic improvement potential.
Smart Money Signal: Radhakishan Damani’s holding lends credibility and investor confidence in the turnaround narrative.

Quick Summary:

Current Market Price: ₹306.70.
FY25 EPS: ₹30.20 (Vs –₹25.49 in FY24).
Net Profit FY25: ₹203 crore.
Cash Position: ₹433 crore.
Backlog: ₹2,662 crore.
Promoter Holding: 68.56%.
Key Investor: Radhakishan Damani (~1%).
Valuation: ~6.6x book value.
Debt: Near-zero.

Risks to Monitor:

Non-recurring gains (insurance & claims) inflated FY25—sustainability depends on core services.
Order flow weakness in FGD/hydro can affect long-term growth.
Execution risks remain, especially in complex EPC contracts.

Conclusion:

GE Power India Ltd is no longer a loss-making laggard—it’s a restructured, debt-free, service-focused engineering play.

Its shift to lifecycle services has boosted operating margins to 5.42% in FY25 from -10.5% in FY24, with ₹433 Cr (~$52 million) in cash ensuring stability.

With strong FY25 earnings, a healthy order book, margin expansion, and strategic investor backing, GEPIL is well-positioned for re-rating.

If execution stays on track, and service-led revenues hold, the stock could reward patient investors. For those scouting fundamental turnarounds in the Indian power sector, GEPIL deserves a close look.

Finally, it's more than just a recovery story—it represents how strategic clarity and adaptability can redefine the trajectory of a legacy power company in a rapidly transforming energy landscape.