How Pritam Deuskar Spotted
GE
Vernova T&D Near ₹200 and Identified a Potential 20x Wealth Creation Opportunity
Understanding India's Transmission Supercycle and Long-Term Wealth Creation
A Remarkable Investment Journey
The Wealth Creation Story
GE Vernova T&D traded near ₹200 several years ago. The stock eventually crossed ₹4,000. It became one of India's biggest wealth creation stories in the power infrastructure sector. The opportunity emerged from identifying long-term structural changes before the broader market recognized them.
Looking Beyond Conventional Thinking
Most investors viewed the company as a traditional electrical equipment and EPC business.
Market focus was largely on renewable energy generation.
The deeper opportunity existed in transmission infrastructure.
The thesis was based on future power delivery requirements rather than current earnings. Seeing What Others Missed
India's Clean Energy Transformation
Why Transmission Became Critical
Renewable energy projects were expanding rapidly. Power generated in remote regions needed efficient transmission.
Stronger grids became essential for energy distribution.
Demand increased for:
Renewable evacuation corridors
Digital substations
Modern transmission networks
GE Vernova T&D's Strategic Position
The company possessed expertise in:
Transformers
Gas Insulated Switchgear (GIS)
Air Insulated Switchgear (AIS)
Grid Automation Systems
Flexible AC Transmission Systems
High Voltage Direct Current (HVDC)
These capabilities positioned it to benefit from India's infrastructure expansion.
HVDC – The Key Competitive Advantage
Why HVDC Mattered
HVDC technology has high entry barriers.
Only a few global companies possess the required expertise.
Essential for long-distance renewable power transmission.
Increasingly important for projects in:
Khavda
Rajasthan
Other renewable energy hubs
This created a strong competitive advantage.
When Fundamentals and Technicals Aligned
Strong Signals of a Re-Rating
Technical Strength
Breakout from long-term consolidation
Rising trading volumes
Trading above major moving averages
Strong price structure
Fundamental Improvement
Higher order inflows
Growing order backlog
Better execution
Improving margins
Transformation in Business Quality
More Than an Equipment
Supplier
GE Vernova T&D evolved into:
A technology-driven grid solutions company
A provider of advanced transmission solutions
A business with global engineering expertise
A participant in export opportunities
The market gradually began valuing the company differently.
Key Investment Lessons
Focus on Structural Themes
Long-term industry shifts create major opportunities.
Understand Industry Evolution
Look beyond obvious trends.
Look for High Entry Barriers
Complex businesses often enjoy stronger advantages.
Combine Fundamentals and Technicals
Both should support the investment thesis.
Think Long Term
Patience is essential for multibagger returns.
Conclusion
The Power of Early Insight
The GE Vernova T&D story demonstrates that extraordinary wealth creation often comes from:
Understanding structural industry changes
Identifying opportunities before the market
Recognizing competitive advantages
Maintaining long-term conviction
Key Takeaway:
Successful investing is often about seeing the future direction of an industry before it becomes obvious to everyone else.
