Siemens Energy India down 5% from listing price; should you buy?

Siemens Energy India Ltd, the demerged entity of Siemens Ltd, was trading 5 per cent lower in Thursday's trade amid muted stock market sentiment. The scrip, which got listed at Rs 2,850, fell 4.91 per cent to hit a low of Rs 2,710 apiece. But brokerage targets largely hinted at up to 24 per cent potential upside on the counter. Siemens Energy India is a play on the decabonization theme, they said. 

Antique Stock Broking said Siemens Energy has established strong infrastructure with over ten factories (including manufacturing facilities, service centers, and repair centers) in India. 

These factories enable Siemens Energy to take advantage of the strong business opportunities in India and South Asia  for which it has exclusive business rights. 

"Siemens Energy is a strong play on industrial decarbonization and T&D spending where a capex of Rs 9.2 lakh crore is lined up to be incurred by FY32. Given its technology leadership, strong product portfolio, established infrastructure, and market leadership in the business verticals, we assign BUY rating on Siemens Energy India with a target of Rs 3,179, valuing the stock at 65x its FY27E EPS of Rs 49," Antique said.

The target price suggests a potential 17.30 per cent upside on the counter.

Given the strong cash flows, robust order book, limited competitive intensity, and export opportunities, HDFC Institutional Equities suggested Buy on Seimens Energy India with a target of Rs 3,000 per share. 

MOFSL has assigned a PE multiple of 60 times to Siemens Energy India and suggested a target price of Rs 3,000, which s based on earnings estimates for September 2027. This valuation is benchmarked against peers such as Hitachi Energy, which trades at a P/E of 74 times, and GE Vernova T&D, trading at 58 times, it said.

Targets of HDFC Institutional Equities and MOFSL suggest 10.7 per cent upside potential for Siemens Equities India. 

Jefferies said Siemens Energy India could trade at 60 times PE based on March 2027 estimates—a nine per cent premium over the multiple used for Siemens ex-Energy — resulting in a target price of Rs 3,350 per share. This target suggests a 24 per cent potential upside.