GE T&D witnessed strong order intake growth of 84% y-o-y to `14.4 bn in Q3FY19, with `5-bn order wins to date during Q4FY19, thus bucking the overall declining order intake trend during H1FY19. Current orderbook at `64 bn (1.5 x TTM sales) provides growth visibility and despite slowdown in Power Grid demand, the company was able to capture healthy orders from private (TBCB) and state utilities which has led to the positive surprise. Finalisation of some of the large orders is expected to be impacted due to elections, but small and
medium orders will continue to flow from the private sector.
Given the expected pick-up of large orders from Q2FY20 onwards, healthy order book and improvement in overall outlook, we raise our FY20e earnings by 35% and upgrade the stock to Add with a revised target price of `296 (32x FY20e earnings).
