Siemens Energy India shares up 5% post Q4 results; here is target price

Shares of Siemens Energy India Ltd climbed 5 per cent in Tuesday's trade following an in-line operational performance in the fourth quarter. Siemens Energy India reported a 27 per cent YoY revenue growth and 25 per cent YoY Ebitda growth. Gross margin for the company improved 100 bps YoY to 35.6 per cent. Ebitda margin came in marginally lower than our estimate at 18.1 per cent, said Antique Stock Broking, while suggested that a 31 per cent PAT growth YoY was broadly in line with its estimates. 

Following the Q4 results, the stock rose 4.54 per cent to hit a high of Rs 3,303 on BSE. Siemens Energy India said order inflow remained steady at Rs 2,350 crore, while the order book maintained a healthy growth momentum with 47 per cent YoY growth to Rs 16,200 crore. 

Antique said Siemens' 10 factories enable it to take advantage of the strong business opportunities in the country and South Asia, for which it has exclusive business rights. 

"On the back of India's soaring domestic power consumption uptick, coupled with growth in public capex, industrial growth and data centers, Siemens plans to expand its transformer and switchgear factories and has launched a state-of-the-art industrial steam turbine service center in Raipur," it said. 

Given its technology leadership, strong product portfolio, established infrastructure, and market leadership in business verticals, Antique maintained 'Buy' rating on Siemens Energy India with an unchanged target of Rs 3,416. It valued the stock at 65 times its anticipated FY27E EPS of Rs 52.60. 

"Over FY25-27, we expect the company to report topline/ earnings CAGR of 22 per cent/ 30 epr cent, respectively," Antique said.

Meanwhile, the brokerage said several HVDC transmission corridors have also been planned for the evacuation of power from large RE potential zones where Siemens is a strong contender and has developed the right to win product portfolio in the form of HVDC, static compensators, and Phasor Measurement Units (PMUs). 

"In the near term, three HVDC projects are lined up for finalisation and Siemens stands a very strong chance to win at least one of them and bolster an already strong order backlog," it said.