Hold Siemens Energy India; target of Rs 3360: Prabhudas Lilladher

Prabhudas Lilladher's research report on Siemens Energy India

We initiate coverage on ENRIN with ‘HOLD’ rating at TP of Rs3,360, valuing the stock at PE of 70x Sep’27E. We believe ENRIN is well-placed to capitalize on the robust multi-year energy transition and energy efficiency opportunity given 1) it being among the only 3 players in India having HVDC capabilities, 2) its market leading position in product sale and upgradation of industrial steam turbines (up to 250 MW), 3) robust opportunities in energy and utility-scale gas services in India, 4)its comprehensive portfolio catering to the decarbonization space, and 5) ongoing doubling of its power transformer manufacturing capacity along with capacity and capability expansion across key transmission equipment manufacturing.

Outlook

We estimate revenue/adj PAT CAGR of ~21.2%/34.8% over SY24-27E. The stock is trading at PE of 92.4x/73.1x on SY26/27E earnings. Initiate with ‘HOLD’.