Siemens Energy India Listing: Demerged entity debuts 14% higher than discovered price

Shares of Siemens Energy India made a stellar debut on Dalal Street on Thursday, July 19, following the long-awaited demerger from parent Siemens.

The stock listed at ₹2,840 per share, compared to its discovery price of ₹2,478 per share. The stock hit an upper circuit of ₹2,982 on NSE soon after listing.

Post listing, Siemens Energy India is expected to be India's largest listed pure-play power T&D equipment player.

Brokerage firms like Jefferies, Motilal Oswal, and HDFC Securities have shared their perspectives on Siemens Energy's valuation and industry standing, especially in comparison to peers such as Hitachi Energy and GE Vernova T&D.

Analysts have shared price targets ranging from ₹3,000 to ₹3,350.

FY27e P/E Ratio

(Source: Jefferies)

Jefferies expects Siemens Energy to clock a robust 40% compound annual growth rate (CAGR) in earnings between FY24 and FY27.

FY27e EPS Estimates

(Source: Jefferies)

The foreign brokerage estimates that the company could command a market capitalisation exceeding $10 billion, positioning it as the largest listed pure-play T&D equipment player in India, ahead of global peers like Hitachi and GE Vernova.

Jefferies believes the company's operating leverage and improving plant utilisation, currently under 60%, could meaningfully boost profitability. In the first five months of FY25 alone, Siemens Energy booked ₹5,100 crore worth of orders, nearly 60% of its FY24 total. It ended March with an order book of ₹15,100 crore, nearly 2.4 times its FY24 revenue.

The company is also doubling its power transformer capacity through a ₹460 crore capex, signaling confidence in future demand. Broader policy tailwinds such as the government’s ₹1.5 lakh crore worth of T&D project awards in FY25, a fourfold jump from the previous year, support this optimism.

The parent company, Siemens Limited (ex-Energy), also remains a 'Buy' for Jefferies with a target price of ₹3,700, driven by upside potential in its railways segment and margin expansion opportunities.