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Siemens Energy India, the demerged transmission and distribution (T&D) entity of Siemens, declined intraday as investors would have enagged in profit booking after the stock made a stellar debut on bourses on Thursday. This business was demerged from Siemens Ltd in April 2025.
On the NSE, the stock tanked 4.51 per cent to ₹2,712. It listed at 14.59 per cent premium of ₹2,840 against a discovered price of ₹2,478.20.
The stock traded 4.88 per cent lower at ₹2,711 on the BSE against the listing price of ₹2,850.
In early trade, the stock surged 5 per cent to hit its upper circuit on the BSE and NSE at 2,992.45 and 2,982, respectively.
The stock took a downturn despite analysts projecting over 5 per cent upside potential for the stock. Market experts believe that this should be the country’s largest listed pure-play power T&D equipment player at over $10 billion market cap followed by Hitachi and GE at $6.8-9.6 billion.
Global brokerage Jefferies expects Siemens Energy to clock 40 per cent earnings CAGR between FY24 and FY27. It has assigned buy call at ₹3,700 as target price per share.
HDFC Securities highlighted that T&D investments have significantly picked up over the last two years, which has benefited sectoral incumbents.
The country requires about ₹1.2 trillion in HVDC equipment investment, of which only ₹250 billion has been awarded until now and won by consortium of Hitachi-BHEL, the analysts noted.
Siemens Energy’s total addressable market may be ₹0.3 trillion under the VSC-based (voltage source converter technology) HVDC technology.
Given the strong cash flows, robust order book, limited competitive intensity, and export opportunities, HDFC Securities initiated coverage on the stock at a target price of ₹3,000.
Motilal Oswal expects revenue CAGR of 25 per cent and PAT CAGR of 31 per cent over FY25-27, with EBITDA margin expanding to 21.4 per cent by FY27. The brokerage has resumed coverage with buy recommendation at ₹3,000 target price. Key risks might crop from ordering slowdown and supply chain issues effect on margin.
Motilal also observed that Hitachi Energy has benefited from large HVDC (High Voltage Direct Current) wins, while Siemens is also better placed to win upcoming projects and has a better margin profile.
According to company’s statement, Siemens AG and its subsidiaries hold 69 per cent in Siemens Energy India and the subsidiaries of Siemens Energy AG hold 6 percent, with the remainder in free float.
Guilherme Mendonca, Managing Director and Chief Executive Officer of Siemens Energy India, said, “With this listing we reaffirm our long-standing commitment to India’s energy future.”
Published on June 19, 2025
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