Accumulate Siemens; target of Rs 3233: Prabhudas Lilladher

Accumulate

Prabhudas Lilladher's research report on Siemens

Siemens India has demerged and transferred its energy business to the newly established Siemens Energy India Ltd. (SEIL). Siemens India (SIEM) will now focus on Smart Infra, Mobility and Digitization/automation while Siemens Energy will focus on the electrical equipment sector catering to the entire energy value chain. We expect the resultant entity to clock a revenue CAGR of ~13% over SY24-27E with sustained EBITDA margin of ~13%. We believe SIEM to sustain long-term growth given 1) continued traction in public capex in areas like Metro, railways, utilities etc. 2) its strong and diversified presence across industries through focus on electrification, digitalization & automation, 3) product localization, 4) strong balance sheet, and 5) value-unlocking from demerger for Energy business.

Outlook

We maintain ‘Accumulate’ rating with a TP of Rs 3,233, valuing the company at a PE of 53x Sep’26E. We await detailed financial information for both entities.

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Siemens - 08042025 - prabhu