Siemens shares drop for 2nd day; target prices, Siemens Energy listing & more

Siemens, whose shares turned ex-date for demerger of energy business this week, fell 3 per cent in Wednesday's trade, taking its recent fall to second session. The scrip has fallen 13 per cent in a week and 31 per cent in 2025 so far, even as analysts are optimistic on the growth prospects for both the businesses.   

Post the demerger Siemens' focus would be on Smart Infra, mobility and automation while Siemens Energy will focus on the electrical equipment sector, catering to the entire energy value chain. 

On Wednesday, shares of Siemens were down 3.47 per cent at Rs 2,668.45.

PL Capital said it expects Siemens to sustain long-term growth given continued traction in public capex, its strong and diversified presence across industries through focus on electrification, digitalisation & automation; product localization; strong balance sheet, and value-unlocking from demerger for Energy business. 

"We maintain ‘Accumulate’ rating with a target of Rs 3,233, valuing the company at a PE of 53 times September 2026. We await detailed financial information for both entities," it said.

Antique Stock Broking also recently retained its 'Buy' rating Siemens Ltd. This brokerage said Siemens is well-prepared to reap the benefits of the rising capex cycle and deliver a strong earnings trajectory. 

"We remain positive on Siemens and maintain 'BUY' rating on the stock with a target proce of Rs 4,336, which is based on 60 times its March 2027 earnings," Antique said.

Siemens historically provided technologies to track systems such as signaling. But Antique said it is now going full throttle as an integrated rail equipment player.

Siemens Energy listing 
The Siemens Energy demerger took place on March 1, 2025, with the transfer of Siemens’s energy business and its employees to SEIL. As part of the transaction, Siemens Energy will issue and allocate equity shares to Siemens, shareholders in the 1:1 ratio. April 7was the record date for the same. 

"The listing of Siemens Energy is expected to take 30 days, aligning with the management’s targeted timeline. The shareholding structure of SEIL will mirror that of Siemens Ltd., ensuring continuity for existing shareholders," PL Capital said.

For Siemens Energy, PL Capital expects the company to achieve a revenue CAGR of
19.6 per cent over the period from SY24 to SY27E, with operating margins expected to expand by 130 basis points, reaching 17 per cent. 

"This growth trajectory will be largely driven by sustained capital expenditure from both public and private sectors in India’s transmission and distribution (T&D) industry. Additionally, emerging high-growth segments such as data centers are poised to play a significant role in SEIL’s expansion, given their increasing demand for reliable and efficient energy infrastructure," PL Capital said.

Siemens Energy also seen benefitting from multiple HVDC tenders in India, each offering an average addressable opportunity of Rs 10,000 crore per project.