Siemens Energy share price lists at ₹2,840 on NSE after demerger; hits 5% upper circuit. Should you buy?
Siemens Energy share price made a strong debut on Dalal Street Thursday, after the demerger from its parent Siemens. Siemens Energy India shares were listed at ₹ 2,840 per share on NSE, up 14% from its discovery price of ₹ 2,478.20 per share.
Soon after the listing, Siemens Energy share price hit a 5% upper circuit of ₹ 2,982 on NSE.
On BSE, Siemens Energy shares opened at ₹ 2,850, and hit 5% upper circuit at ₹ 2,992.45 apiece.
The listing of Siemens Energy India shares comes after the demerger of power transmission and distribution (T&D) business from Siemens. Siemens demerger took place on April 7.
According to brokerage firm Jefferies, Siemens Energy India is estimated to be India's largest listed pure-play power T&D equipment company. It expects the company to see 40% EPS CAGR in FY24-27E driven by the robust T&D pipeline and operating leverage.
Jefferies believes Siemens Energy should be a key beneficiary of the $100 billion+ transmission capex pipeline, while its current margins reflect less than 60% utilisation at its T&D facilities which offers operating leverage linked upside. It believes overall infra + industrial capex should moderate to 11% CAGR in FY24-27E vs 22% in FY21-24, but Power will remain a key driver at 21% CAGR.
Siemens Energy recorded ₹ 5,100 crore order flow in the first 5 months of FY25 as against ₹ 8,800 crore in FY24, and has an order book of ₹ 15,100 crore as on 1 March 2025 (2.4x FY24 revenue).
Jefferies has a 'Buy' ratings on Siemens India Energy shares with a target price of ₹ 3,700 apiece, valuing the stock at 55 times price-to-earnings (PE) for March 2027 estimates, which is in-line with its multiple for ABB and pre-demerger multiple for Siemens.
Motilal Oswal Financial Services has a 'Buy' rating and ascribes a multiple of 60x to Siemens Energy shares, arriving at a target price of ₹ 3,000 on September 2027 estimates.
Based on relative valuation of peers, Hitachi Energy trades at 74x P/E and GE Vernova T&D trades at 58x P/E March 2027 estimates. Hitachi Energy has benefited from large HVDC wins, while Siemens is also better placed to win upcoming projects and has a better margin profile, it noted.
''We expect the company to benefit from a strong addressable market in the T&D business. Based on the financial details available for FY24, we arrive at pro-forma financials for the energy business. We expect revenue and PAT CAGR of 25% and 31% over FY25-27, with EBITDA margin expanding to 21.4% by FY27. Margins have already started expanding in 5MFY25,' said Motilal Oswal.
HDFC Securities initiated coverage with a 'Buy' call and Siemens Energy share price target of ₹ 3,000 per share. It believes Siemens Energy India captures maximum value among its peers as it covers larger market size. It models 30% FY25-27E PAT CAGR for the company.
Given strong order backlog and ordering pipeline, Antique Stock Broking expects Siemens Energy India to deliver revenue, EBITDA and PAT CAGR of 22%, 30% and 35%, respectively, over FY24-27E. It will be supported by smooth execution of orders in hand coupled with margin improvement driven by an improved pricing environment led by strong demand for T&D equipment.
The brokerage firm has assigned a 'Buy' rating on Siemens Energy India shares with a target price of ₹ 3,179 apiece, valuing the stock at 65x its FY27E EPS of ₹ 49, on the back of its technology leadership, strong product portfolio, established infrastructure, and market leadership in business verticals.
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