Siemens Energy’s share price is set to list on the bourses on June 19. Jefferies expects that Siemens Energy can list between Rs 2,995 per equity share to Rs 3,711 per share.
Siemens demerged in April 2025, and Siemens’ post-demerger share price opened at Rs 2,450 and implied Rs 2,478 value for the demerged entity Siemens Energy.
Jefferies on Siemens: Post listing, Siemens Energy should be country’s largest T&D player
Siemens Energy on listing should be India’s largest listed pure-play power transmission & distribution (T&D) equipment player at over $10 billion market capitalisation, followed by Hitachi and GE at $6.8-9.6 billion.
“We believe Siemens Energy should see 40% earnings per share CAGR in FY24- 27 driven by the robust T&D pipeline and operating leverage, implying healthy upside potential below Rs 3,000 per equity share. Plus, the target price reflects the improved outlook on railways and potential order flow and margin surprise from there.
Jefferies on Siemens: Industry tailwinds to help
Jefferies expects the overall infrastructure + industrial capex should moderate to 11% CAGR in FY24- 27, compared to 22% in FY21- 24. However, Power will remain a key driver at 21% CAGR. Transmission bids of Rs 1.5 lakh crore were awarded in FY25 as against Rs 39,500 crore in FY24. Reflecting management’s confidence in growth, Siemens Energy is incurring Rs 460 crore of capex to double power transformer capacity.
Siemens Energy recorded Rs 5,100 crore order flow in the first 5 months of FY25 as against Rs 8,800 crore in FY24 and has an order book of Rs 15,100 crore as of March 2025, which is 2.4 times more than the revenue reported in FY24.
Siemens Energy should be a key beneficiary of the over $100 billion transmission capex pipeline. Current margins reflect less than 60% utilisation at its T&D facilities, which offers operating leverage linked upside. Hitachi Energy and GE Vernova T&D are comparable to Siemens Energy and are trading at 66x and 54x PE March 27.
“We believe Siemens Energy can trade at 60x PE March 2027, which is a 9% premium to our 12-month price target multiple on Siemens post energy business demerger, implying a target price of Rs 3,350 per share,” said Jefferies.
Jefferies retained ‘Buy’ rating on Siemens
Also, Jefferies has maintained its “Buy” rating on Siemens and a price target of Rs R3,700 for several reasons, on the back of the strong outlooks for both the demerged Siemens Energy (Siemens Energy) and the Siemens India post demerger.