UBS Turns Bullish on Power Equipment Sector; Favours Triveni Turbine and Waaree Energies

06 Aug 2025

UBS has initiated coverage on power generation equipment manufacturers, assigning 'Buy' ratings to BHEL, Waaree Energies, Premier Energies, and Suzlon. The brokerage has also reiterated its 'Buy' ratings on Thermax and Triveni Turbine.

“We foresee strong potential for earnings growth and order-driven value creation over the next 3–5 years, supported by scaling operations, favourable policy trends, and accelerating technology adoption — creating an attractive setup for returns,” UBS noted in a client update. The brokerage anticipates investments in India's power sector to reach ?11 trillion during FY25–FY30, a significant rise from ?4 trillion in FY20–FY25.

"Following a prolonged period of underinvestment in power generation capacity, we believe the sector is poised for a cyclical recovery," said UBS. "Solar energy is expected to capture the largest share of industry profits, with thermal power following. While competition in the solar segment is likely to remain intense, the thermal space is expected to remain more consolidated, dominated by BHEL and, to some extent, L&T."