Buy Schneider Electric Infrastructure; target of Rs 810: LKP Research

LKP Research's research report on Schneider Electric Infrastructure

Schneider Electric Infrastructure Ltd (SEIL) continues the momentum with posting strong set of numbers. Revenue increased by 24.4% YoY to ₹5.9 bn driven by growth in key segments such as data centers (About 15% (+/- 3%) of the revenue), photovoltaics (PV), and resilience. Order backlog rose 2.2% YoY to ₹12.5 bn, driven by growing transactional business momentum and strong Q4 deliveries, which typically reduce backlog buildup. Inflows of ₹7.6/26.9 bn in Q4/FY25, were supported by key wins in core segments, including advanced transformers, smart switchgear, and solutions for utilities, industrials, and renewable projects.

Outlook

Given the performance in FY25, we have tweaked our estimates in EBITDA margins and continue to maintain BUY rating with a TP of ₹810 at 48x multiple of FY27E EPS.

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