PL Capital initiates 'Hold' on Siemens Energy; stock up 28% since debut

PL Capital has initiated coverage on Siemens Energy India with a ‘Hold’ rating and a target price of ₹3,360, valuing the stock at a price-to-earnings (PE) of 70x Sep’27E. Analysts cited the company’s strong positioning to capture opportunities from India’s ongoing energy transition and transmission & distribution (T&D) upcycle, while noting that current valuations already factor in much of the growth potential.

 

At 9:23 AM, Siemens Energy's share price was trading 0.63 per cent lower at ₹3,488 per share. In comparison, the BSE Sensex was up 0.10 per cent at 81,796.72.

 

Since its listing on June 19, 2025, Siemens Energy shares have gained 28 per cent, as compared to BSE Sensex’s rise of 0.43 per cent.   Track Stock Market Live Updates

Why did PL Capital initiate coverage on Siemens Energy?

Capitalising on India’s energy transition

Siemens Energy, according to analysts, is among only three players in India with High Voltage Direct Current (HVDC) capabilities, giving it an edge in renewable integration and grid stability projects. The company also has a market-leading position in industrial steam turbines up to 250 MW and is doubling capacity in power transformer manufacturing while expanding production of key transmission equipment such as vacuum interrupters, large reactors, and high-voltage switchgear. 

T&D expansion to drive demand

The company has committed ₹8,000 crore to expand capacity, which analysts believe will help it capture India's surging demand for 765 kV EHV transmission systems, projected to grow at 16.5 per cent CAGR over FY25–32. The company is also a leading contender in the STATCOM market (₹2,000 crore annual opportunity over the next five years), driven by renewable integration and grid stability requirements.

Poised to tap into HVDC opportunity

India’s Voltage Source Converter (VSC) HVDC pipeline represents an addressable opportunity of ₹38,000 crore by FY31, with Siemens Energy well-positioned as a proven supplier, having delivered India’s first ±320 kV, 2,000 MW VSC HVDC project in 2021. Analysts highlight the company’s potential to secure major orders like Leh–Kaithal and Khavda–South Olpad in FY26–27. If successful, these could add ₹12,000 crore cumulative HVDC revenues by SY30 and reinforce the company’s leadership in energy transition.

Leadership in industrial steam turbines

Siemens Energy continued to dominate the industrial steam turbines market (≤250 MW), supported by growing energy needs in data centres (21 per cent CAGR over 2024–27) and efficiency drives in core industries. The company also participates in India’s ₹1,270 crore annual gas turbine Renovation and Modernization and Life Extension (R&M/LE) services market and has positioned itself with a comprehensive decarbonisation portfolio, covering waste heat recovery (WHR), carbon capture (CCUS), green hydrogen, electrification, and automation.

Outlook

The brokerage expects the company to deliver a revenue compound annual growth rate (CAGR) of 21.2 per cent and adjusted profit after tax (PAT) CAGR of 34.8 per cent over SY24–27E.