Buy Siemens Energy India; target of Rs 3800: Motilal Oswal

Buy

Motilal Oswal's research report on Siemens Energy India

Siemens Energy in its analyst meet highlighted the opportunity pipeline across domestic and international markets for power transmission business. Management is optimistic about 1) 10-15% YoY growth on a sustainable basis for power transmission segment; 2) margin improvement, aided by pricing power and operating leverage benefits; 3) adequate capacity utilization of new capacities that will come in FY27 as enquiry levels remain strong. The company focuses on VSC-based HVDC projects, and in the near term, limited opportunities in these projects can limit domestic HVDC order inflows for the company, though TAM remains strong for non-HVDC projects. Power generation business, which is dependent on base industries like cement, steel, sugar, ethanol etc can grow slightly slower than power transmission business.

Outlook

We broadly maintain our estimates and retain BUY on Siemens Energy with an unchanged TP of INR3,800, based on 60x two-year forward earnings.

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Siemens Energy India - 11122025 - moti