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Stocks To Buy: Here's what is driving Motilal Oswal to project a 20% upside on this new T&D listingAt the current price, shares of Atlanta Electricals are trading at 40.8 times and 26.6 times their estimated financial year 2027 and 2028 earnings and Motilal Oswal's price target values the stock at 32 times its March 2028 estimated Earnings Per Share (EPS), which is still a 55% discount to CG Power.By Hormaz Fatakia   April 20, 2026, 10:09:02 AM IST (Updated)2 Min ReadBrokerage firm Motilal Oswal has initiated coverage on transformer manufacturing company Atlanta Electricals Ltd. with a "buy" rating in its latest note on the Transmission and Distribution (T&D) space on Monday, April 20.

Motilal Oswal has a price target of ₹1,650 on Atlanta Electricals, which is implying a potential upside of 20% from current levels. Shares of Atlanta Electricals, which listed back in September 2025, have already risen nearly 90% from their issue price of ₹754 per share.

Atlanta Electricals is transitioning from a low-voltage transformer manufacturer to a high-voltage transformer player and has emerged as a leading player based on a commissioning capacity of 63 GVA, as per Motilal Oswal.

"We expect the company to capitalize on the strong demand for high-range transformers from both central and state utilities," Motilal Oswal's note said, adding that it expects the company to participate fully in the 400kV and 765kV transformer projects from the second half of financial year 2027, once it clears the short-circuit tests and completes technology tie-ups for the 765kV range.

Atlanta Electricals has an order book of ₹2,400 crore and is likely to see its order inflow grow at a Compounded Annual Rate (CAGR) of 40% over financial year 2025-2028, according to Motilal Oswal. Over the same time period, the brokerage sees Atlanta Electricals' revenue growing at a 39% CAGR, EBITDA growing at a 49% CAGR and Profit After Tax (PAT) growing at a 50% CAGR.

At the current price, the stock is trading at 40.8 times and 26.6 times its estimated financial year 2027 and 2028 earnings and Motilal Oswal's price target values the stock at 32 times its March 2028 estimated Earnings Per Share (EPS), which is still a 55% discount to CG Power.

"The stock could potentially re-rate once it begins receiving orders for the 400kV and 765kV transformer range," Motilal Oswal said.

Delays in obtaining necessary design and short-circuit testing approvals for higher kV ranges, intensified competition, and delays in ramping up revenues from new capacities are some key risks for the company, highlighted by the brokerage.

This is the first recommendation that the stock has received since its listing.

Apart from Atlanta Electricals, Motilal Oswal has also initiated coverage on CG Power (Target ₹900), GE Vernova T&D (Target ₹4,750) has reiterated its buy rating on Siemens Energy (Target ₹3,700) and upgraded Hitachi Energy to Neutral with a price target of ₹27,000.

Shares of Atlanta Electricals are trading 3.2% higher on Monday at ₹1,420.4. The stock has risen 20% in the last one month.Continue ReadingFirst Published: Apr 20, 2026 10:08 AM ISTTagsshare market todayStocks to buy