Siemens Energy to list on exchanges after demerger; growth prospects bullish

Synopsis

Siemens Energy India shares are set to debut on the stock market following its demerger from Siemens. Analysts predict substantial growth, projecting a 40% CAGR in earnings until FY27. With a potential market capitalization exceeding USD 10 billion, it could become India's largest T&D equipment player. Strong order books, capacity expansion, and government T&D projects fuel optimism.

Shares of Siemens Energy India will list on Thursday following the long-awaited demerger from parent Siemens.

Analysts expect the newly carved-out entity to emerge as a leading beneficiary of India’s accelerating power transmission and distribution (T&D) investment cycle.

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

The brokerage estimates that the company could command a market capitalisation exceeding USD 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 Rs 5,100 crore worth of orders, nearly 60% of its FY24 total. It ended March with an order book of Rs 15,100 crore, nearly 2.4 times its FY24 revenue.

The company is also doubling its power transformer capacity through a Rs 460 crore capex, signaling confidence in future demand. Broader policy tailwinds such as the government’s Rs 1.5 trillion 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 Rs 3,700, driven by upside potential in its railways segment and margin expansion opportunities.

Market watchers will now closely follow whether investor interest keeps pace with the company’s strong fundamental outlook and macro tailwinds.

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