Siemens Energy India: Should you buy, hold or sell this stock post analyst meet?

Brokerages are neutral-to-positive on Siemens Energy India following the company's analyst meet, where it highlighted the opportunity pipeline across domestic and international markets for power transmission business. 

The management said it is optimistic about 10-15 per cent YoY growth on a sustainable basis for power transmission segment. It sees margin improvement, aided by pricing power and operating leverage benefits. The adequate capacity utilisation of new capacities is seen in FY27 as enquiry levels remain strong. 

MOFSL said Siemens Energy India is focusing on VSC-based HVDC projects, and, in the near term, limited opportunities in these projects can limit domestic HVDC order inflows for the company. This is ven as addressable market remains strong for non-HVDC projects. 

"Power generation business, which is dependent on base industries like cement, steel, sugar, ethanol etc can grow slightly slower than power transmission business. We broadly maintain our estimates and retain BUY on Siemens Energy with an unchanged TP of INR3,800, based on 60x two-year forward earnings," it said.

ICICI Securities said Siemens Energy India has seen a strong year anchored by the transmission segment, with margin expanding 660 basis points (bps) over the past two years to 19.3 per cent, aided by a better mix, improved pricing and rising export contribution. 

"We expect margin to sustain at 20 per cent. Transmission profitability has seen the largest uplift, a 700 bps margin increase YoY, while generation margin remains well supported by stable demand from core industrial segments. 

"Order backlog has jumped from Rs 7,700 crore in FY23 to Rs 16,200 crore in FY25. We expect transmission bidding activity to be strong at Rs 80,000–1,00,000 crore annum in next three years. We estimate execution momentum to sustain and growth in ordering to normalise on a high base in the near term. Maintain HOLD; value SEI at 65x FY27E earnings," it said while suggesting a target of Rs 3,125. 

Antique Stock broking said Siemens Energy India is well positioned to benefit from the anticipated surge in the Indian power generation growth story, thanks to  a diverse suit of market leading products and comprehensive solutions spanning the power sector value chain.

On the back of a strong order book and tender pipeline, it expects Siemens Energy India to report revenue and earnings CAGR of 22 per cent and 30 per cent, respectively over FY25-27. 

"We maintain BUY rating on the stock with an unchanged target of Rs 3,416, valuing it at 65 times its FY27E EPS of Rs 52.60," it said.