Siemens Energy India Lists on BSE & NSE Post-Demerger | Stock Outlook & Key Highlights – 19 June 2025
By CapitalKeeper | News | Indian Sock Market | Market Moves That Matter I 19th June 2025
1. Listing & Price Action
- The demerged entity listed at ₹2,850 on BSE and ₹2,840 on NSE significantly above its demerger reference price of ₹2,350–2,478 .
- In early trade, the stock surged 5%, hitting the upper circuit at ₹2,992.45 on BSE and ₹2,982 on NSE .
- However, gains didn’t last: by afternoon, prices had retraced 5%, trading around ₹2,700–2,708 as profit-taking set in .
🎯 2. Analyst Targets & Market Sentiment
Broader investor confidence is reflected in bullish brokerage reports:
| Brokerage | Rating | Target Price (₹) | Implied Upside |
|---|---|---|---|
| Jefferies | Buy | 3,700 | 30% |
| Antique Broking | Buy | 3,179 | 12% |
| Motilal Oswal | Buy | 3,000 | 5% |
| HDFC Securities | Buy | 3,000 | 5% |
- Jefferies emphasizes that Siemens Energy India is now likely India’s largest pure‑play T&D equipment provider, estimating 40% EPS CAGR between FY24–27 and valuing the company at over USD 10 bn market cap .
- Antique, Motilal Oswal, and HDFC Securities highlight growth in revenue and margins—backed by strong domestic order flows and government-led T&D investments—projecting EPS/IP growth of 22%–35% CAGR by FY27 .
🏗️ 3. Fundamental Drivers Behind the Listing
a) Strong Order Book & Production Capacity
- Already booked ₹5,100 cr of orders in the first five months of FY25, nearly 60% of FY24’s total, building a ₹15,100 cr backlog—2.4× FY24 revenue .
- A ₹460 cr capex plan is underway to double transformer output, aiming to fully utilize current manufacturing capacity (60%) .
b) Macro Tailwind: T&D Spend
- India’s T&D capital expenditure, spurred by grid enhancement and green energy ambitions, is projected to cross US$100 bn, including ₹1.5 trn in FY25 alone .
- Policy impetus and climate commitments boost demand for decarbonisation solutions—areas where Siemens Energy holds competitive strength .
c) Operational Upside
- Underutilization in plants offers margin improvement as volumes ramp up.
- Post-demerger focus sharpens capital allocation, sales & strategy, enabling Siemens AG to streamline its business and unlock potential separately .
📉 4. Risks & Key Market Watchpoints
- MSCI Index Exclusion: Analysts warn of $170 mn outflows following MSCI exclusion on June 20, creating potential near-term pressure .
- Volatility: The sharp opening followed by profit-booking confirms a volatile trading setup; ₹2,850 could act as key support, while ₹3,200–3,500 is viewed as upside resistance .
- Execution Risks: Successful order delivery and plant ramp-up will be critical; failure to maintain execution cadence could compress margins and dent sentiment.
📊 5. Investment Perspective & Strategy
- Short Term: Expect choppy moves with first resistance around ₹3,000; profit-taking is natural given the upper-circuit rally.
- Medium to Long Term: With strong earnings growth, policy momentum, and market leadership in T&D, Siemens Energy aligns as a growth infrastructure play with 5–30% upside, per targets.
- Valuation Context: Global T&D peers trade at P/E of 54–66× (GE, Hitachi); Siemens Energy’s implied multiple (60× FY27E earnings) is consistent with this range .
💡 Conclusion
Siemens Energy India’s listing marks a pivotal shift—transforming into a standalone powerhouse in India’s transmission and distribution landscape. Fueled by a strong order backlog, macro investments, and operational leverage, it presents a compelling case for long-term investors. That said, caution is warranted in the short run due to event-driven volatility.
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