UBS bullish on power equipment makers; Triveni Turbine, Waaree Energies among top picks

ET BureauLast Updated: Aug 06, 2025, 06:10:00 AM IST

Synopsis

UBS has initiated coverage on power generation equipment manufacturers, issuing 'buy' ratings for BHEL, Waaree Energies, Premier Energies, and Suzlon. The brokerage anticipates a significant investment of ₹11 trillion in India's power sector between FY25-FY30, driven by policy tailwinds and technology adoption. Solar energy is expected to dominate the profit pool, followed by thermal, with BHEL maintaining a strong position.

Mumbai: UBS has initiated coverage on power generation equipment makers with 'buy' ratings on BHEL, Waaree Energies, Premier Energies and Suzlon. The brokerage reiterated its 'buy' rating on Thermax and Triveni Turbine.

"We see scope for earnings and order-led value creation over the next 3-5 years, offering a favourable setup for returns, driven by scale, policy tailwinds, and technology adoption," said UBS in a client note.

Agencies

The brokerage expects India's power sector to see investment of ₹11trillion over FY25-FY30 as against ₹4 trillion in FY20-FY25.

"We believe that, post a period of prolonged underinvestment in power generating capacity, the sector is likely to enter a cyclical upturn," said UBS. "We believe solar would likely take the largest share of the profit pool, followed by thermal. We believe competitive intensity will likely remain high in the solar space, whereas thermal will remain concentrated with BHEL and to an extent L&T."

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