Hold Siemens Energy India; target of Rs 3125: ICICI Securities

ICICI Securities research report on Siemens Energy India

Siemens Energy India (SEI) is operating in two key segments – generation and transmission. While we expect the generation segment to grow at a steady rate, the transmission segment is one of the best plays in energy transition and is expected to be the growth driver in the medium term. SEI is among the leading players providing transmission equipment. The domestic transmission tailwinds are blowing strong – FY25 saw transmission project awards worth INR 1.6trn in the bids. We expect the bidding activity to be strong at INR 0.8–1trn/annum over the next three years. SEI also caters to a part of Siemens Energy Global’s order book (OB), further expanding its TAM.

Outlook

Its order outlook remains healthy; it received order inflow (OI) of ~INR 131bn in FY25 (its first full-year after demerger from Siemens Ltd). Its OB remains strong at INR 162bn, as of Sep’25. The stock is trading at ~65x FY27E earnings. We maintain HOLD on the stock, valuing it at 65x FY27E earnings.