Siemens Energy share price falls 5% after solid listing post-demerger. Should you buy?

Siemens Energy share price made a strong debut on Dalal Street Thursday, after the demerger from its parent Siemens. Siemens Energy India shares were listed at ₹2,840 per share on NSE, up 14% from its discovery price of ₹2,478.20 per share.

Soon after the listing, Siemens Energy share price hit a 5% upper circuit of ₹2,982 on NSE. However, the stock came under selling pressure and declined 5% from the listing price. It hit a low of ₹2,700 apiece on NSE.

On BSE, Siemens Energy shares opened at ₹2,850, and hit 5% upper circuit at ₹2,992.45 apiece. The stock dropped 5% from listing  price and touched a low of ₹2,707.50 per share.

The listing of Siemens Energy India shares comes after the demerger of power transmission and distribution (T&D) business from Siemens. Siemens demerger took place on April 7.

According to brokerage firm Jefferies, Siemens Energy India is estimated to be India’s largest listed pure-play power T&D equipment company. It expects the company to see 40% EPS CAGR in FY24-27E driven by the robust T&D pipeline and operating leverage.

Should you buy Siemens Energy India shares after listing?

Jefferies believes Siemens Energy should be a key beneficiary of the $100 billion+ transmission capex pipeline, while its current margins reflect less than 60% utilisation at its T&D facilities which offers operating leverage linked upside. It believes overall infra + industrial capex should moderate to 11% CAGR in FY24-27E vs 22% in FY21-24, but Power will remain a key driver at 21% CAGR.

Siemens Energy recorded ₹5,100 crore order flow in the first 5 months of FY25 as against ₹8,800 crore in FY24, and has an order book of ₹15,100 crore as on 1 March 2025 (2.4x FY24 revenue).

Jefferies has a ‘Buy’ ratings on Siemens India Energy shares with a target price of ₹3,700 apiece, valuing the stock at 55 times price-to-earnings (PE) for March 2027 estimates, which is in-line with its multiple for ABB and pre-demerger multiple for Siemens.

Motilal Oswal Financial Services has a ‘Buy’ rating and ascribes a multiple of 60x to Siemens Energy shares, arriving at a target price of ₹3,000 on September 2027 estimates.

Based on relative valuation of peers, Hitachi Energy trades at 74x P/E and GE Vernova T&D trades at 58x P/E March 2027 estimates. Hitachi Energy has benefited from large HVDC wins, while Siemens is also better placed to win upcoming projects and has a better margin profile, it noted.

“”We expect the company to benefit from a strong addressable market in the T&D business. Based on the financial details available for FY24, we arrive at pro-forma financials for the energy business. We expect revenue and PAT CAGR of 25% and 31% over FY25-27, with EBITDA margin expanding to 21.4% by FY27. Margins have already started expanding in 5MFY25,” said Motilal Oswal.

HDFC Securities initiated coverage with a ‘Buy’ call and Siemens Energy share price target of ₹3,000 per share. It believes Siemens Energy India captures maximum value among its peers as it covers larger market size. It models 30% FY25-27E PAT CAGR for the company.

Given strong order backlog and ordering pipeline, Antique Stock Broking expects Siemens Energy India to deliver revenue, EBITDA and PAT CAGR of 22%, 30% and 35%, respectively, over FY24-27E. It will be supported by smooth execution of orders in hand coupled with margin improvement driven by an improved pricing environment led by strong demand for T&D equipment.

The brokerage firm has assigned a ‘Buy’ rating on Siemens Energy India shares with a target price of ₹3,179 apiece, valuing the stock at 65x its FY27E EPS of ₹49, on the back of its technology leadership, strong product portfolio, established infrastructure, and market leadership in business verticals.

At 2:25 PM, Siemens Energy share price was locked at 5% lower circuit of ₹2,707.50 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.