Siemens Energy India shares debuted on the Bombay Stock Exchange (BSE) at Rs 2,850 and quickly surged to Rs 2,992.45, marking a 5% increase and hitting the upper circuit limit. Following this strong start, analysts project the stock could gain up to 30%, with targets set as high as Rs 3,700.
Market analysts emphasize that Siemens Energy India, newly separate from Siemens Ltd, stands to benefit from the increasing investments in India’s power transmission and distribution (T&D) infrastructure. As the country’s energy demands rise, Siemens Energy is well-positioned to capitalize on this growth.
According to brokerage firm Motilal Oswal, Siemens Energy is poised for substantial opportunities in the T&D sector. Their forecasts, based on FY24 data, estimate a compound annual growth rate (CAGR) of 25% in revenue and 31% in profit after tax (PAT) from FY25 to FY27. They also project that the company’s EBITDA margin will reach 21.4% by FY27, supported by positive trends observed in the first five months of FY25.
Jefferies recommends a ‘buy’ rating with a target price of Rs 3,700, indicating a potential upside of 29.8%. They highlight that Siemens Energy could emerge as India’s largest publicly traded company focused exclusively on T&D equipment, boasting a market capitalization exceeding $10 billion. This valuation surpasses competitors like Hitachi and GE, which range from $6.8 billion to $9.6 billion. Jefferies anticipates a 40% EPS CAGR for Siemens Energy from FY24 to FY27, driven by major T&D projects.
HDFC Securities also recommends buying the stock with a target price of Rs 3,000, reflecting a modest upside of 5.3%. They recognize Siemens Energy India as a key player in the transition to decarbonization by offering solutions across power generation, grid automation, green hydrogen, and battery storage. The company holds exclusive distribution rights in several South Asian countries and is expanding its business in areas such as PEM electrolysers and hydrogen blend gas turbines.
Antique Broking has set a target price of Rs 3,179, suggesting an upside potential of 11.5%. They note that Siemens Energy India supports its clients in achieving net-zero goals and operates over ten advanced manufacturing facilities throughout India, with exclusive rights in South Asia, including Bhutan, Nepal, Sri Lanka, and the Maldives. With a projected capital expenditure of Rs 9.2 trillion until FY32, Siemens Energy is positioned to benefit from industrial decarbonization efforts and investments in T&D.
These analyses underline the positive outlook for Siemens Energy India as it navigates the evolving energy landscape, bolstered by substantial investments and a focus on sustainable solutions.
