Siemens Energy Lists at Rs 2,840 After Demerger, Hits 5% Upper Circuit on Debut
Shares of Siemens Energy India made a strong debut on the stock exchanges on Thursday, following its demerger from parent company Siemens Ltd. The stock was listed at Rs 2,840 on the NSE, up 14.6% from the price of Rs 2,478.20 per share determined through the price discovery mechanism.
Soon after listing, the stock hit a 5% upper circuit at Rs 2,982 on the NSE. On the BSE, Siemens Energy shares listed at Rs 2,850 and surged to Rs 2,992.45, also touching the upper circuit.
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The listing comes after Siemens demerged its power transmission and distribution (T&D) business on April 7, 2025, carving out Siemens Energy India as a standalone listed entity. The company is now being touted as India’s largest listed pure-play T&D equipment firm.
Strong Fundamentals and Order Book
Brokerage firm Jefferies expects Siemens Energy to benefit from India’s massive $100 billion-plus power transmission capex pipeline. The firm forecasts a 40% compound annual growth rate (CAGR) in earnings per share (EPS) from FY24 to FY27, supported by a healthy project pipeline and operating leverage as T&D facility utilisation ramps up.
As of March 1, 2025, Siemens Energy’s order book stood at Rs 15,100 crore, which is about 2.4 times its FY24 revenue. The company secured Rs 5,100 crore in new orders in just the first five months of FY25, compared to Rs 8,800 crore for the full year FY24.
Should You Buy Siemens Energy Shares?
Analysts remain optimistic. Jefferies has a ‘Buy’ rating with a target price of Rs 3,700, valuing the stock at 55x March 2027E earnings, which aligns with the multiples of peers like ABB.
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Motilal Oswal Financial Services also maintains a ‘Buy’ call, assigning a 60x multiple to its projected earnings, leading to a target of Rs 3,000 by September 2027. It anticipates a revenue CAGR of 25% and PAT CAGR of 31% over FY25–27, with EBITDA margins expanding to 21.4% by FY27.
In comparison, global peers Hitachi Energy and GE Vernova are trading at 74x and 58x P/E, respectively, as per March 2027 estimates.
Industry Outlook
The overall industrial capex growth in India is expected to moderate to 11% CAGR in FY24–27, compared to 22% CAGR in FY21–24. However, the power sector is expected to remain a growth driver with 21% CAGR, offering ample tailwinds for Siemens Energy.
Given its strong order book, margin expansion, and leadership in the T&D space, Siemens Energy appears well-positioned to capitalise on India’s infrastructure and power transformation initiatives.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
