The demerger was effective from April 7 with Siemens (ex-Energy) shares trading at Rs 2,450, implying a derived value of Rs 2,478 for Siemens Energy.
Jefferies has initiated coverage with a “Buy” rating on both Siemens ex-Energy and Siemens Energy. The brokerage sees upside in Siemens on the back of strong policy tailwinds, capacity headroom, and a growing order book.
The brokerage projects Siemens Energy’s revenue to grow from Rs 63,452 crore in FY24 to Rs 1.51 lakh crore by FY27, backed by the government’s transmission capex pipeline of over $100 billion.
The company has already secured orders worth Rs 5,100 crore in the first five months of FY25, taking the total order book to Rs 15,100 crore—2.4 times FY24 revenue. Margins are also expected to improve as existing plants currently operate at sub-60% utilisation.
EBITDA margins are projected to rise from 15.6% in FY24 to 19.5% by FY27, with earnings per share (EPS) expected to grow at 40% CAGR during FY24–27.Jefferies has assigned a base case fair value of Rs 3,350 per share for Siemens Energy, based on 60x FY27 earnings. The valuation benchmark is drawn from global peers such as Hitachi Energy (66x) and GE Vernova (54x) on a FY27 price-to-earnings basis.For Siemens (ex-Energy), Jefferies has a target price of Rs 5,170 per share, citing strong growth visibility in railways and factory automation, supported by a robust order inflow of Rs 5,900 crore in the first half of FY25.
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