What Could Spark the Next Phase of Hitachi Energy’s Growth?

Hitachi Energy India (NSE: POWERINDIA) listed on March 30, 2020 (as ABB Power Products & Systems India) after the demerger from ABB India. The company later rebranded to Hitachi Energy India Ltd in November 2022.

The setup: a remarkable price run and a very high sticker price

• Listing date: March 30, 2020. NSE India

• All-time low (listing day): ~₹680 (Mar 30, 2020).

• Recent price (Sept 19, 2025 close): ~₹19,025.

• Market cap (Sept 19, 2025): ~₹84,802 crore.

  
  

That’s an ~28× move from the listing-day trough to today’s level, leaving the stock with a very high nominal price (₹19k). High sticker prices can make odd-lot trading costly and deter incremental retail participation; while fundamentals drive value, “affordability” effects and tighter spreads often follow splits for Indian names.

Why a split now?

1) Liquidity & narrower spreads.

Lower per-share price typically reduces tick-size frictions, tightens bid–ask spreads, and lifts average daily traded value (ADTV)—useful for both active and passive execution. (Index weights are market-cap based, so a split doesn’t change weight, but better tradability helps indexers and quant/passive funds track and rebalance more efficiently.)

2) Broader ownership & passive flow readiness.

A lower unit price makes the stock more accessible to retail and smaller institutions, and can help meet eligibility screens that some passive/quant mandates apply around liquidity/turnover (separate from market cap). Improved turnover can also support F&O eligibility tests (where applicable), further deepening the investor base.

3) Cheaper future capital.

If a split raises liquidity and reduces volatility/spreads, the company’s equity cost of capital can compress at the margin—useful if management contemplates follow-on issuance, ESOP exercises, or using stock as acquisition currency.

4) Signaling without fundamentals dilution.

A split doesn’t change intrinsic value, but in India it often signals management’s intent to broaden participation—and, when paired with strong execution (order wins, margin discipline), the market tends to reward the name.

The Successful Performance from recent India splits

Capri Global	1:2 split + 1:1 bonus	05-Mar-2024	+13% rally ahead of ex-date in April; ex-day mostly mechanical.
Varun Beverages	2:5 split	12-Sep-2024	+5–6% intraday on ex-date; “price crash” in apps was just adjustment.
Reliance Industries	1:1 bonus	28-Oct-2024	+0.5% on ex-bonus; +2.6% intraday when board consideration hit news.
Dr. Reddy’s Labs	1:5 split	28-Oct-2024	+2% intraday on ex-date (some later −3% adjustment reported).
Coforge	1:5 split	04-Jun-2025	+1.5–2% on ex-date; +4% in the next 3 sessions.
Bajaj Finance	1:2 split + 4:1 bonus	16-Jun-2025	~+4% around record-date; ~+2.5% intraday on ex-date.

Takeaway: while not guaranteed, Indian names often see modest positive drift around ex-dates or when record dates are fixed—especially when fundamentals are supportive.

What could a split mean for Hitachi Energy India?

Assume today’s market cap is ~₹84,802 crore. Below is the added market cap if improved liquidity/sentiment nudges the stock up 3%, 5%, 7.5%, or 10% post-split (purely illustrative—splits don’t create value by themselves):

+3%	2,544
+5%	4,240
+7.5%	6,360
+10%	8,480

[Math: base ₹84,802 cr × % change. Base market cap source: Yahoo Finance India, Sept 19, 2025.] Yahoo Finance

Why these gains can be “sticky”

• Execution tailwinds: The company keeps announcing power-grid orders (e.g., PGCIL transformers), reinforcing growth visibility; better liquidity on top of strong execution improves sponsorship.

• Index & passive mechanics: Even if index weight is unchanged at split, smoother rebalances and lower slippage can increase passive flows over time as funds face less impact cost.

• Employee & corporate actions: A lower unit price helps ESOP participation and makes potential secondary raises or stock-for-deal considerations more tractable.

Recommended approach

1. Split ratio: Consider 1:5 (₹10 FV → ₹2) or 1:10 (if management wants a sub-₹2,000 or sub-₹1,000 sticker). Both are common in India and supported by recent peers.

2. Time the announcement alongside a strong catalyst (results/order wins) to keep narrative tight.

3. Proactive comms: Explain mechanics (no value dilution), outline liquidity benefits, and set expectations on index/derivative adjustments.

4. Track microstructure KPIs post-split (spreads, depth, ADTV) and publish improvements in the next investor deck—closing the loop from “signal” to “measured outcome.”

Bottom line

Hitachi Energy India has compounded from its 2020 listing to ~₹19k/share and ~₹85k crore market cap. A stock split would not change cash flows, but it can improve liquidity, broaden ownership, and marginally lower equity friction costs—helpful for passive flows, cheaper capital access, and shareholder value if paired with the company’s ongoing execution in India’s grid-buildout. Finally, a $500 million boost in market cap post-split would be the perfect cherry on top of Hitachi Energy’s $10 billion platform.

Disclaimer: AltG, including its principals, directly or indirectly, holds shares in the company mentioned. This material is for informational purposes only and should not be construed as investment advice.