Siemens Energy India: Undervalued Gem or Overhyped IPO? Analyst Targets Revealed

Siemens Energy India shares made a notable market entry on Dalal Street this Thursday, following the demerger from its parent company, Siemens. The stock was listed on the NSE at ₹2,840 per share, marking a 14% premium over its discovery price of ₹2,478.20.

Initial Trading Highlights: Volatile Debut on NSE and BSE

Soon after listing, Siemens Energy shares surged to hit the 5% upper circuit limit at ₹2,982 on the NSE. However, this momentum was met with selling pressure, pushing the stock down by 5% from the listing price, touching a low of ₹2,700. On the BSE, the shares opened at ₹2,850, similarly hitting a 5% upper circuit at ₹2,992.45, before dropping 5% to a low of ₹2,707.50.

This debut follows the April 7 demerger of Siemens’ power transmission and distribution (T&D) business, establishing Siemens Energy India as a focused pure-play T&D equipment company.

Market Positioning: India’s Largest Listed Pure-Play T&D Company

According to brokerage Jefferies, Siemens Energy India is positioned as India’s largest listed pure-play power T&D equipment firm. The firm forecasts an impressive 40% EPS CAGR between FY24 and FY27, driven by a robust T&D project pipeline and operational leverage.

Jefferies highlights Siemens Energy as a major beneficiary of the over $100 billion transmission capital expenditure pipeline in India. Despite current margins reflecting less than 60% utilization of its T&D facilities, there is significant upside potential through operating leverage as capacity utilization improves.

Analyst Ratings and Price Targets: Bullish Consensus Across Brokers

Jefferies maintains a ‘Buy’ rating with a target price of ₹3,700, valuing the stock at 55x FY27 price-to-earnings (PE), consistent with valuation multiples of peers like ABB and Siemens pre-demerger.
Motilal Oswal Financial Services also gives a ‘Buy’ rating, assigning a 60x multiple with a target price of ₹3,000 based on September 2027 estimates. They expect revenue and PAT CAGR of 25% and 31% over FY25-27, with EBITDA margin expansion to 21.4% by FY27.
HDFC Securities initiated coverage with a ‘Buy’ call and a price target of ₹3,000, citing Siemens Energy India’s superior market coverage and forecasting a 30% PAT CAGR for FY25-27.
Antique Stock Broking forecasts 22% revenue CAGR, 30% EBITDA CAGR, and 35% PAT CAGR over FY24-27. It recommends a ‘Buy’ rating with a price target of ₹3,179, valuing the stock at 65x FY27 EPS of ₹49, emphasizing the company’s technology leadership, strong product portfolio, and market dominance.

Order Book and Revenue Outlook: Strong Backlog Supports Growth

Siemens Energy recorded an order inflow of ₹5,100 crore in the first five months of FY25, compared to ₹8,800 crore for the whole of FY24. The current order book stands at ₹15,100 crore as of March 1, 2025, approximately 2.4x FY24 revenue, underpinning a strong revenue pipeline.

This backlog is expected to support steady growth as Siemens Energy executes its order book, with analysts highlighting margin improvements driven by strong demand and better pricing dynamics in the T&D sector.

Competitive Landscape: Positioned Ahead of Peers

In comparison, Hitachi Energy trades at a 74x PE, and GE Vernova T&D at 58x PE for March 2027 estimates. While Hitachi benefits from major HVDC wins, Siemens Energy’s broader market positioning and better margin profile are seen as competitive advantages. Analysts believe Siemens is well placed to capture upcoming T&D projects and leverage its infrastructure and expertise.

Conclusion: Siemens Energy India’s Market Debut Sparks Positive Analyst Sentiment

Siemens Energy India’s market debut has attracted positive attention from institutional analysts who emphasize its growth potential in India’s vast power transmission and distribution market. With a strong order backlog, supportive capital expenditure trends, and improving margins, Siemens Energy is positioned to benefit from India’s infrastructure push.

Investors and market watchers will closely monitor the stock’s performance as it navigates initial volatility and strives to meet ambitious growth targets projected by leading brokerage firms.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.