Siemens Energy Shares Make Stellar Debut, Locked in 5% Upper Circuit Post-Demerger

Shares of Siemens Energy India, the power transmission and distribution (T&D) arm recently demerged from Siemens, made a stellar debut on the stock exchanges on 19 June, listing at ₹2,840. Buying interest in the counter was high as the stock rallied 5% post-listing to be locked in the upper circuit at ₹2992.45.

The demerger officially took place on 7 April 2025. On the day Siemens began trading ex-Energy, its share price opened at ₹2,450, implying an indicative value of ₹2,478 per share for the newly carved-out Siemens Energy entity. With its listing, Siemens Energy now commands a market capitalisation of ₹1.06 lakh crore.

Bullishness for the transmission and distribution company has been on a high, with several brokerages painting a strong growth picture for Siemens Energy. Jefferies, in particular, expects Siemens Energy to emerge as the country’s largest listed pure-play power T&D equipment provider, with a market cap exceeding $10 billion, ahead of peers like Hitachi and GE, which are valued between $6.8 and $9.6 billion.

“We believe Siemens Energy should see a 40% compound annual growth rate (CAGR) in earnings per share between FY24 and FY27, driven by a strong T&D pipeline and operating leverage. This implies a healthy upside potential at levels below ₹3,000 per share,” Jefferies noted in a report.

Jefferies further sees Siemens Energy as well-positioned to be a key beneficiary of India’s over $100-bn transmission capex pipeline. The brokerage highlighted that current margins suggest less than 60% capacity utilisation at Siemens Energy’s T&D facilities, leaving headroom for  operating leverage and margin expansion as volumes ramp up.

Reflecting its confidence in future growth, the company is also investing ₹4.6-bn to double its power transformer capacity. The momentum is already visible as Siemens Energy reported fresh order inflows worth ₹5,100 crore in the first five months of FY25, compared to ₹8,800 crore for the whole of FY24. As of 1 March 2025, the company’s order book stood at a robust ₹15,100 crore, or 2.4 times its FY24 revenue, pointing towards strong visibility and sustained demand in the pipeline, Jefferies added.

Joining the list is HDFC Securities that also holds a bullish stand on Siemens Energy India, citing its strong fundamentals and growth outlook. The company’s healthy order backlog of offers solid visibility for future earnings, HDFC Securities believes.

The brokerage also models a 30% CAGR in net profit over FY25–27 for Siemens Energy, driven by accelerating execution and margin expansion. With strong cash flows, limited competitive intensity, and rising export opportunities adding to the upside, the brokerage has initiated a ‘buy’ rating on Siemens Energy with a target price of ₹3,000 per share.