Mumbai: After selling Indian equities worth almost ₹2.09 lakh crore this year, Foreign institutional investors(FIIs) have been training their guns on a particular stock that actually has what it takes to offer them inflation-beating returns. Hitachi Energy India, a midcap power technology stock, has witnessed increased interest from FIIs, with their holdings now accounting for almost 9.7% of the company’s shares.
A year ago, FIIs held just 5.1% of Hitachi Energy India, with the increase commencing earlier this quarter, when the price was actually falling to about ₹18,000 from a peak of ₹20,000 witnessed earlier this year.
What makes Hitachi India a hot stock to own?
Analysts say the stock has been on the FIIs radar for its reputation in offering transformative solutions for India’s power sector. It has seen strong order inflows increasing to ₹2,217 crore in Q1FY26 from ₹1,952 crore in the same period last year, a growth of 13.6%. Hitachi offers the Indian power sector state of the art transformers, generator step-up units (GSUs) and auto-connected transformers, aligned to unique Indian needs while meeting global standards. The company has offered innovative power grid technologies that are widely used across the country.
Hitachi Energy offers power discoms a solution that addresses a growing challenge they face- energy storage. It also helps them with grid automation and helps optimise its distribution network, which includes substations, communication networks and other infrastructure.
The company’s profits have jumped from ₹52 crore in Q2FY25 to ₹264 crore this time, a 406% year-on-year growth.
At a time when most of the FIIs were busy selling their stakes due to increased retail demand, interest in companies like Hitachi Energy India remains an exception, based on the potential for growth rather than the seemingly endless mirage for short-term profits.
