Accumulate Siemens Energy India; target of Rs 3312: Prabhudas Lilladher

Prabhudas Lilladher's research report on Siemens Energy India

We attended the analyst meet of Siemens Energy India (ENRIN), during which the management outlined the company’s performance and strategic outlook. Favorable macro tailwinds are expected to support continued growth in ordering activity within the Power Transmission segment with STATCOMs likely to remain a key growth driver, led by an annual tender pipeline of 8-10 projects over the next few years and ENRIN’s market share of ~50%. However, the opportunity to scale meaningfully is constrained by the limited visibility of VSC HVDC projects in India, which currently materialize at a rate of roughly one project every alternate year. In the Power Generation segment, steady demand from end-markets such as cement, steel, and paper & pulp is expected to underpin growth, with large service contracts providing incremental momentum.

Outlook

The stock is currently trading at PE of 75.6x/58.5x on SY26/27E. We maintain our 'Accumulate' rating and value the stock at PE of 65x Sep’27E (70x Sep’27E earlier) given the limited pipeline for VSC HVDC opportunities for the company, arriving at TP of Rs3,312 (Rs3,566 earlier).