8x Jump In FII Stake: Multibagger Low PE Stock With 80% ROCE; Here's What Drove The Company's Recent Performance

Indian equity benchmarks traded lower on Wednesday, with the benchmark Nifty 50 index declining 48.95 points, or 0.21 per cent, to 23,193.15. Amid the broader market weakness, GE Power India share price traded at Rs 433.95, up 0.96 per cent from the previous close. The stock remained in focus as the company reported improving operational performance, rising institutional participation and strong visibility in its core services business.

FII And DII Holding Witness a Sharp Increase

According to the latest shareholding pattern, Foreign Institutional Investors (FIIs) increased their stake in the company to 1.26 per cent in March 2026 from 0.15 per cent in December 2025, representing an increase of more than 8 times during the quarter.

Meanwhile, Domestic Institutional Investors (DIIs) increased their holding to 1.13 per cent from 0.43 per cent, reflecting an increase of more than 2.5 times over the same period. Promoters continued to hold 68.58 per cent of the company as of March 31, 2026.

Low PE Stock With Strong ROCE

GE Power India currently trades at a Price-to-Earnings (P/E) ratio of 17.4 times and has reported a Return on Capital Employed (ROCE) of 80 per cent, highlighting strong capital efficiency.

The company's improving financial metrics have been supported by stronger execution across its services and upgrade businesses, which continued to drive revenue growth during the quarter. Here's What Drove The Company's Recent Performance

Revenue Growth Driven By Services And Upgrades

The company reported Q4 revenue of Rs 316 crore, registering a 19 per cent quarter-on-quarter increase. The growth was primarily driven by higher execution volumes in its upgrade portfolio and increasing contribution from the services business.

Management continues to focus on higher-margin service opportunities, which require lower working capital and offer faster execution cycles compared with traditional project-based operations.

Core Services Orders Continue To Expand

A key driver of the company's performance was the growth in its services segment. During Q4, core services orders increased 22 per cent quarter-on-quarter, rising from Rs 207 crore to Rs 253 crore.

The company stated that its strategy remains focused on expanding the services portfolio, which provides better profitability and stronger cash flow visibility.

Profitability Improves Significantly

During the quarter, GE Power India benefited from the resolution of certain legacy issues. The company recorded a reversal of Expected Credit Loss (ECL) provisions related to BHEL amounting to approximately Rs 44 crore.

As a result, Profit Before Tax (PBT) stood at Rs 119 crore, compared with a loss of Rs 15 crore in the corresponding quarter of the previous year.

Healthy Operating Margins

Even after adjusting for one-time gains, the company reported a normalised EBITDA margin of 18 per cent during Q4. According to management, the improvement reflects better project selection, tighter execution discipline and a healthier business mix with greater contribution from higher-margin services.

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GE Power India's Rs 1,628 Crore Order Book Provides Visibility

As of the latest update, GE Power India's total order book stood at approximately Rs 1,628 crore. While the overall backlog declined following the termination of certain FGD contracts, the quality of the order book improved significantly.

Notably, the company's core services backlog increased nearly 40 per cent year-on-year. Management expects approximately 85 to 90 per cent of this services backlog to be executed during FY27, providing strong revenue visibility for the upcoming financial year.

About GE Power India

GE Power India Ltd provides engineering, manufacturing, procurement and servicing solutions for the power generation industry. The company operates across power plant equipment, upgrades, maintenance services and lifecycle solutions for utilities and industrial customers.

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Disclaimer: The article is for informational purposes only and not investment advice.