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Goldman Sachs upgraded Schneider Electric Infrastructure (NSE:SEIN) (SCHN:IN) stock rating to Buy from Sell on Tuesday, raising its price target to INR910.00 from INR505.00. The significant revision reflects Goldman’s new assessment of the expanding market for distribution equipment in India.
The upgrade is based on Goldman’s analysis indicating an upcoming inflection point in India’s power demand growth that could lead to wider power deficits in the medium term. This development emphasizes the need for continued expansion and upgrades to India’s grid infrastructure.
Goldman Sachs highlighted the growing importance of expanding low- and medium-voltage distribution networks, switchgear, transformers, and intelligent breakers in the Indian market. These components form critical parts of the power distribution infrastructure that Schneider Electric (EPA:SCHN) supplies.
The investment bank estimates India’s power transmission capital expenditure requirements will exceed US$550 billion by fiscal year 2050. This represents approximately 30% of the overall energy transition capital outlay projected for the country.
The new Buy rating marks a complete reversal from Goldman’s previous Sell recommendation, while the price target increase of over 80% signals substantially improved growth prospects for Schneider Electric’s infrastructure business in India.
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