Nuvama Institutional Equities initiated coverage on Siemens Energy India with a ‘Buy’ rating and a target price of Rs 4,200, implying an upside of 20% from the current market price. The brokerage said that the company’s growth is at a discount, while the HVDC (High-Voltage Direct Current) remains unpriced.
Massive beneficiary of India’s transmission capex cycle
Siemens Energy is a primary player positioned to benefit from India’s projected Rs 7.93 lakh crore transmission investment cycle through FY36. This structural growth is driven by the country’s shift toward a “coal-plus-renewables” model and the need to integrate 900GW of non-fossil capacity. The company’s portfolio is concentrated in the high-growth 400–765kV segment, providing critical equipment like transformers, switchgear, and grid-stabilisation technologies such as STATCOMs.
Robust export growth through global parent network
A significant differentiator for the company is its integration with Siemens Energy AG’s global ecosystem, which provides direct access to international markets without independent sales development. Exports reached 28.5% of H1FY26 revenue, fuelled by a global supply deficit in power transformers across North America and Europe. India is increasingly becoming a manufacturing and engineering hub for the parent company, supporting US data centre builds and global renewable energy projects.
Differentiated power generation and recurring services
Unlike its peers, focused solely on T&D, Siemens Energy derives almost 35% of its operating income from power generation. This segment offers a high-quality, annuity-like revenue stream through recurring services, thermal fleet modernisation, and life extension programs. Because Siemens Energy’s technology underpins roughly 55% of India’s large steam turbine installed base, it possesses a structural advantage in capturing long-term maintenance and upgrade opportunities across the country’s ageing utility fleet.
Aggressive manufacturing capacity expansion
To support its substantial Rs 18400 crore order backlog, Siemens Energy is dramatically increasing its production capabilities. The company is doubling its transformer capacity at its Kalwa facility and has approved an Rs 2,060 crore greenfield factory, which will eventually take its total transformer capacity to 60,000 MVA, a fourfold increase from current levels. These expansions are designed to address rising demand for renewable evacuation, grid modernisation, and lucrative export opportunities.
Compelling valuation with significant upside optionality
Nuvama said that while Siemens offered a growth and return profile comparable to its high-voltage peers (projecting a 28% EPS CAGR through FY28), it trades at a discount of roughly 50x PE compared to the peer average of 60x. Additionally, current financial estimates do not price in “long-term optionality” from emerging sectors such as next-generation VSC-HVDC technology and India’s ambitious roadmap to expand nuclear capacity from 8GW to 100GW by 2047.
Siemens Energy share price performance
The share price of Siemens Energy has risen 4.4% in the last five trading sessions. The stock has declined 1.8% in the last one month. However, the stock has surged 24% in the past six months. Siemens Energy’s share price has increased 18% in the last one year.