Latest news with #SiemensEnergyIndia
Economic Times
11 hours ago
- Business
- Economic Times
Siemens Energy may see up to $180 million in outflows after MSCI exit
Siemens Energy India, which debuted on the Indian stock exchanges on Thursday, could see passive outflows of up to $180 million as it exits the MSCI Global Standard Index just a day after listing, according to estimates by Nuvama Alternative & Quantitative Research. ADVERTISEMENT Global index provider MSCI will delete Siemens Energy India from its Global Standard Index (Large Cap segment), effective post-market close on June 20. The exit, Nuvama notes, could trigger 'estimated passive outflow in the range of USD 170–180 million,' although the brokerage added that a more accurate estimate would be available once the stock begins trading. 'If stock trades at lower circuit then implementation will get postponed,' Nuvama had said. Siemens Energy India began trading on Thursday, June 19, after being spun off from Siemens Ltd earlier this year. The stock was listed at Rs 2,850 and quickly hit the 5% upper circuit at Rs 2,992.45 on the BSE, bolstered by investor optimism around the company's role in India's expanding power transmission and distribution (T&D) shares are currently part of the 'T' Group—meaning they will be settled on a trade-for-trade basis for the first ten trading sessions, limiting intraday speculation. ADVERTISEMENT While MSCI exclusion is expected to lead to sizable passive outflows, Siemens Energy's removal from domestic indices such as the NSE and BSE early next week is likely to be more muted. 'The outflows here are expected to be minimal due to its negligible weight and passive tracking will be lower,' Nuvama said, adding that more clarity would follow the first day of trade. The brokerage is also monitoring how FTSE will respond the risk of outflows, brokerages remain bullish on Siemens Energy's long-term prospects. ADVERTISEMENT Jefferies estimates nearly 30% upside potential with a target price of Rs 3,700, calling it 'India's largest listed pure-play power T&D equipment player at $10 billion+ market cap.' The brokerage forecasts a 40% EPS CAGR over FY24-27E, citing a strong T&D pipeline and operating Oswal resumed coverage with a target of Rs 3,000 and a 'Buy' rating, projecting a 25%/31% CAGR in revenue and PAT over FY25-27 and an EBITDA margin expansion to 21.4% by FY27. 'Margins have already started expanding in 5MFY25,' the brokerage noted. ADVERTISEMENT HDFC Securities echoed the optimistic outlook, citing Siemens Energy's diversified offerings in power generation, green hydrogen, and grid automation, as well as exclusive rights in South Asia. It sees a 30% PAT CAGR supported by robust cash flows and innovative Energy India was demerged from Siemens Ltd in April 2025. The newly listed company focuses on transmission, distribution, and small- to mid-sized turbines. Its offerings range from 250 MW industrial turbines to 800 MW utility-scale generators, and includes power transformers up to 765 kV and EPC services. ADVERTISEMENT The firm is expected to benefit from India's planned Rs 3 trillion transmission investments through FY30, especially in high-voltage (400 kV and 765 kV) segments. Capex plans include Rs 4.6 billion for doubling transformer capacity, Rs 3.3 billion for GIS units in Goa, and Rs 0.6 billion for vacuum interrupters—some of which will cater to export markets. Also read | Siemens Energy shares zoom 5%, hit upper circuit post listing. Brokerages project 30% upside (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
11 hours ago
- Business
- Mint
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.
Time of India
11 hours ago
- Business
- Time of India
Siemens Energy India listing: Stock surges 5%, hits upper circuit; here's what brokerages recommend
Siemens Energy India listing: Market experts anticipate potential gains of up to 30% in the stock value, with price targets reaching Rs 3,700. (AI image) Siemens Energy India share price: The stock of Siemens Energy India, which demerged from Siemens Ltd, reached its upper limit of Rs 2,992.45 on the BSE during early trading on Thursday, rising 5% from its initial listing price of Rs 2,850. Following this listing, market experts anticipate potential gains of up to 30% in the stock value, with price targets reaching Rs 3,700. According to an ET report, experts believe that this newly independent entity will significantly benefit from India's growing investments in power transmission and distribution (T&D) infrastructure. Siemens Energy India Brokerage recommendations: Motilal Oswal: Buy with a Target price of Rs 3,000. Stock has upside potential of 5.3% According to Motilal Oswal, the company is positioned to gain robust market opportunities in the transmission and distribution sector. The brokerage has developed pro-forma financial projections for the energy division based on FY24 financial data. Their analysis suggests a revenue/PAT CAGR of 25%/31% during FY25-27, alongside EBITDA margin growth reaching 21.4% by FY27. The initial five months of FY25 have already demonstrated margin improvements. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 유일한 공식 무료 SOC 게임! 설치도 없습니다! 경복의 바다 플레이하기 Undo Jefferies: Buy with a Target price of Rs 3,700. Stock has upside potential of 29.8% Upon its market entry, Siemens Energy is positioned to become India's largest listed company focusing exclusively on power T&D equipment, with a market capitalisation exceeding $10 billion, surpassing Hitachi and GE, which are valued between $6.8-9.6 billion. According to Jefferies' analysis, the company is expected to achieve a 40% EPS CAGR during FY24-27E, supported by substantial T&D projects and operational efficiency, suggesting significant growth potential at prices below Rs 3,000 per share. HDFC Securities: Buy with a Target price of Rs 3,000. Stock has upside potential of 5.3% Siemens Energy India stands as a prominent force in decarbonisation, delivering comprehensive solutions across power generation, grid automation, green hydrogen and battery storage sectors. The organisation holds exclusive distribution rights for multiple South Asian nations and has successfully established fresh business ventures in PEM electrolysers, hydrogen blend gas turbines and battery storage systems. The organisation demonstrates promising financial prospects with substantial cash flow and an anticipated 30% PAT CAGR. The positive assessment from the brokerage firm stems from SEL's expanding market footprint and advanced technological capabilities. Antique Broking: Buy with a target price of Rs 3,179. Stock has an upside potential of 11.5% Siemens Energy India delivers comprehensive solutions across the energy sector, encompassing oil and gas production, power generation, and transmission systems. The organisation supports its clientele in their journey towards decarbonisation and achieving net-zero objectives. The company maintains more than ten advanced manufacturing facilities across India, whilst holding exclusive regional rights in South Asia (Bhutan, Nepal, Sri Lanka, and Maldives). With a projected capex of Rs 9.2 trillion until FY32, the organisation stands to benefit from industrial decarbonisation initiatives and transmission and distribution investments. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
12 hours ago
- Business
- Time of India
Siemens Energy shares zoom 5%, hit upper circuit post listing; brokerages project 30% upside
The shares of Siemens Energy India , the demerged arm of Siemens Ltd , zoomed 5% in Thursday's early trade to hit their upper circuit at Rs 2,992.45 on the BSE after listing at Rs 2,850. With this listing, brokerage firms project up to 30% upside potential in the stock, setting a target price as high as Rs 3,700. Analysts expect the newly carved-out entity to emerge as a leading beneficiary of India's accelerating power transmission and distribution (T&D) investment cycle. Here's what brokerages say: Jefferies: Buy| Target price: Rs 3,700| Upside potential: 29.8% Siemens Energy on listing should be India's largest listed pure-play power T&D equipment player at $10 billion+ market cap, followed by Hitachi and GE at $6.8-9.6 billion. Jefferies believes that the company should see 40% EPS CAGR in FY24-27E, driven by the robust T&D pipeline and operating leverage, implying healthy upside potential below Rs 3,000/share. Live Events Antique Broking: Buy| Target price: Rs 3,179| Upside potential: 11.5% Siemens Energy India provides integrated products, solutions, and services across the energy value chain, focusing on oil and gas production, power generation, and transmission. The company aids customers in achieving decarbonization and net-zero targets. Siemens Energy operates over ten state-of-the-art factories in India and has exclusive rights in South Asia (Bhutan, Nepal, Sri Lanka, and Maldives). The company is well-positioned to capitalize on industrial decarbonization and T&D spending, with a capex of Rs 9.2 trillion planned by FY32. Also read: Rs 58,000 crore cash lying idle in 5 mutual fund schemes. Are stocks too expensive to buy? Motilal Oswal: Buy| Target price: Rs 3,000| Upside potential: 5.3% Motilal Oswal expects the company to benefit from a strong addressable market in the T&D business. Based on the financial details available for FY24, the brokerage firm arrived at pro-forma financials for the energy business. They expect revenue/PAT CAGR of 25%/31% over FY25-27, with EBITDA margin expanding to 21.4% by FY27. Margins have already started expanding in 5MFY25. HDFC Securities: Buy| Target price: Rs 3,000| Upside potential: 5.3% Siemens Energy India (SEL) is a key player in decarbonization, offering a range of solutions including power generation, grid automation, green hydrogen, and battery storage. With exclusive rights for several South Asian countries, SEL has developed new business lines in PEM electrolyzers, hydrogen blend gas turbines, and battery storage. The company has a strong revenue outlook with robust cash flow and a projected 30% PAT CAGR. The brokerage firm's optimistic view is based on its growing market presence and innovative technologies. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
13 hours ago
- Business
- Economic Times
Siemens Energy shares list at Rs 2,850 on BSE after demerger; growth prospects bullish
Shares of Siemens Energy India listed at Rs 2,850 on BSE in Thursday's trade following the long-awaited demerger from parent Siemens. Meanwhile, the stock listed at Rs 2,840 on the NSE. ADVERTISEMENT Analysts expect the newly carved-out entity to emerge as a leading beneficiary of India's accelerating power transmission and distribution (T&D) investment cycle. According to Jefferies, Siemens Energy could clock a robust 40% compound annual growth rate (CAGR) in earnings between FY24 and FY27. The brokerage estimates that the company could command a market capitalisation exceeding USD 10 billion — positioning it as the largest listed pure-play T&D equipment player in India, ahead of global peers like Hitachi and GE Vernova. Jefferies believes the company's operating leverage and improving plant utilisation — currently under 60% — could meaningfully boost profitability. In the first five months of FY25 alone, Siemens Energy booked Rs 5,100 crore worth of orders, nearly 60% of its FY24 total. It ended March with an order book of Rs 15,100 crore, nearly 2.4 times its FY24 revenue. The company is also doubling its power transformer capacity through a Rs 460 crore capex, signaling confidence in future demand. Broader policy tailwinds such as the government's Rs 1.5 trillion worth of T&D project awards in FY25 — a fourfold jump from the previous year — support this optimism. ADVERTISEMENT The parent company, Siemens Limited (ex-Energy), also remains a 'Buy' for Jefferies with a target price of Rs 3,700, driven by upside potential in its railways segment and margin expansion watchers will now closely follow whether investor interest keeps pace with the company's strong fundamental outlook and macro tailwinds. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
