GE Vernova T&D (GVT&D)
Fast GrowerFairStock Score: 65/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,350 |
| Market Cap | ₹1,11,380.24 Cr |
| P/E Ratio | 85.46 |
| ROCE | 54.74% |
| ROE | 60.23% |
| Dividend Yield | 0.23% |
| Profit Growth | 24.65% |
| Debt/Equity | 0.01 |
| Sales Growth | 39.48% |
| Free Cash Flow | ₹-5 Cr |
| Promoter Holding | 51% |
| 52-Week Range | ₹2,523.2 — ₹5,650 |
| Sector | Electrical Equipment |
| Book Value | ₹105.08 |
Strengths
- Exceptional capital efficiency with ROE of 60.23% and ROCE of 54.74%.
- Strong growth momentum: sales up 43.12% and profit up 132.89%.
- Piotroski F-Score of 8/9 and Altman Z-Score of 15.35 indicate robust financial health.
- Promoter holding of 51% aligns management interests with minority shareholders.
- Latest quarter net profit of ₹291 Cr on ₹1,701 Cr sales shows strong earnings power.
Concerns
- Extreme valuation: P/E of 88.22, P/B of 64.93, and EV/EBITDA of 35.64 leave virtually no margin of safety.
- Free cash flow is negative at ₹-5 Cr despite high reported profits.
- Graham Number of ₹254.93 and DCF value of ₹853.67 are far below the current price of ₹4,496.40.
- Dividend yield of 0.13% is negligible, so total return depends entirely on share price appreciation.
AI Analysis
Look at this business and my first thought is: quality is real. GE Vernova T&D earns a remarkable ROE of 60.23% and ROCE of 54.74%, with sales up 43.12% and profit up 132.89%. The latest quarter alone brought ₹1,701 Cr in sales and ₹291 Cr in net profit. Piotroski score of 8/9 and Altman Z of 15.35 confirm an operationally sound, financially solid enterprise. Promoter holding of 51% also ensures aligned ownership. But I am a value investor, not a momentum investor. At ₹4,496.40 the market is valuing this at ₹98,584 Cr, or 88.22 times earnings, 64.93 times book, and 35.64 times EV/EBITDA. The Graham Number works out to only ₹254.93; even the DCF intrinsic value is ₹853.67. That means I would have a margin of safety of negative 1,410%. In other words, the price already discounts perfection for years to come. Free cash flow is minus ₹5 Cr, so reported profits are not yet translating into cash. Dividend yield of 0.13% shows shareholders are relying entirely on capital appreciation. This is exactly the kind of wonderful business I admire but at a price that makes me uncomfortable. Benjamin Graham taught me that price is what you pay, value is what you get. Here, the value I can calculate does not justify the price. I would wait for a far lower price, or for earnings and cash flow to grow into this valuation. Until then, this remains on my watchlist, not in my wallet.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer