Siemens Energy freezes at 5% upper circuit on debut; what brokerages say?

Siemens Energy India share opened at ₹2,850 on the BSE and at ₹2,840 on the NSE. Till 10:04 AM; a combined 810,000 shares changed hands, and there were pending buy orders for 66,000 on the NSE & BSE.

Share price of Siemens Energy India today: Shares of Siemens Energy India were locked in 5 per cent upper circuit at ₹2,992 on the BSE in Thursday's intra-day trade after its market debut on the bourses. The stock was frozen at ₹2,982 on the National Stock Exchange (NSE), data showed. 

 

Siemens Energy India share opened at ₹2,850 on the BSE and at ₹2,840 on the NSE. Till 10:04 AM; a combined 810,000 shares changed hands, and there were pending buy orders for 66,000 on the NSE and BSE.

 

Siemens Energy India is demerged from Siemens focuses on Transmission and Distribution (T&D) as well as small-sized turbines. Siemens group follows September as its year end. The shareholders of Siemens received 1 share of Siemens Energy India for each 1 share held in Siemens.

 

Siemens demerged on April 7, 2025 and Siemens ex-Energy price opened at ₹2,450 and implied ₹2,478 share value for the Siemens Energy India entity.   Catch Stock Market Updates Today LIVE

Financial performance of Siemens Energy India

 

In FY24 ending September 30, 2024 the Siemens Energy business earned revenues Ebitda and PAT of ~₹6,280 crore ~₹980 crore, and ~₹710 crore respectively with earnings before interest, taxes, depreciation and amortisation (Ebitda) and profit after tax (PAT) margins at ~15.7 per cent and ~7 per cent respectively. The order book stood at ~₹10,000 crore. For 5 months up to March 1, 2025, Siemens energy delivered revenues/Ebitda/PAT of ₹2,653/₹588/₹409 crore. The order backlog has increased to ₹15000 crore. 

 

Brokerages see more upside for the stock

 

Motilal Oswal Financial Services (MOFSL) ascribed a multiple of 60x to Siemens Energy and arrived at a target price of ₹3,000 on September 2027 estimates. The brokerage firm said it resumes coverage with a 'Buy' recommendation. Key risks to the thesis can come from a slowdown in ordering and supply chain issues impacting margin.

 

MOFSL expects the company to benefit from a strong addressable market in the T&D business. Based on the financial details available for FY24, the brokerage firm arrived at pro-forma financials for the energy business. “We expect revenue/PAT compounded annual growth rate (CAGR) of 25 per cent/31 per cent over FY25-27, with Ebitda margin expanding to 21.4 per cent by FY27. Margins have already started expanding in 5MFY25,” MOFSL said.

 

Analysts at Jefferies, meanwhile, believe Siemens Energy India should see 40 per cent EPS CAGR in FY24-27E driven by the robust T&D pipeline and operating leverage implying healthy upside potential below ₹3,000 per share.

 

Siemens Energy India should be a key beneficiary of the $100 billion+ transmission capex pipeline. Current margins reflect <60 per cent utilisation at its T&D facilities which offers operating leverage linked upside.  ALSO READ | Data Patterns share price rises 4% in flat market; what's boosting rally?

 

Analysts believe overall infra + industrial capex should moderate to 11 per cent CAGR in FY24-27E versus 22 per cent in FY21-24, but Power will remain a key driver at 21 per cent CAGR. Transmission bids of ₹1.5 trillion were awarded in FY25 versus ₹39,500 crore in FY24. Reflecting management's confidence in growth, Siemens Energy India is incurring ₹460 crore capex to double power transformer capacity. 

 

“Our ₹3,700 price target values Siemens India e-Energy at 55x PE Mar-27E, which is in-line with our PT multiple for ABB and pre-demerger multiple for Siemens. This reflects the improved outlook on railways and potential order flow and margin surprise from there. Downside risks, analysts said, include fixed cost rise faster than revenue growth; and capex cycle trends further weakening.