Siemens Energy share price falls 5% after solid listing post-demerger. Should you buy?

Siemens Energy India: A Powerhouse Debut on Dalal Street

Siemens Energy India's shares made a dynamic entry onto the Dalal Street on Thursday, following its demerger from parent company Siemens. The initial listing on the NSE saw shares priced at ₹2,840, a significant 14% jump from the discovery price of ₹2,478.20. This impressive start, however, didn't last long.

The stock initially soared, hitting a 5% upper circuit at ₹2,982 on the NSE. But selling pressure quickly emerged, leading to a 5% decline from its listing price, eventually settling at a low of ₹2,700. A similar trend played out on the BSE, with an opening price of ₹2,850, a peak at ₹2,992.45, and a final low of ₹2,707.50.

This exciting debut follows the April 7th demerger of Siemens' power transmission and distribution (T&D) business. According to Jefferies, this makes Siemens Energy India the largest listed pure-play power T&D equipment company in India.

Should You Invest? Analyst Opinions Vary

Several brokerage firms have weighed in on the future of Siemens Energy India shares:

• Jefferies: A "Buy" rating with a target price of ₹3,700, citing potential benefits from a substantial transmission capex pipeline and significant operating leverage. They project a 40% EPS CAGR (FY24-27E).
• Motilal Oswal Financial Services: A "Buy" rating with a target price of ₹3,000 (September 2027 estimates), based on a 60x multiple. They forecast 25% revenue and 31% PAT CAGR (FY25-27).
• HDFC Securities: Initiated coverage with a "Buy" call and a target price of ₹3,000, highlighting Siemens Energy India's dominant market share.
• Antique Stock Broking: Assigned a "Buy" rating with a target price of ₹3,179, projecting 22%, 30%, and 35% CAGRs for revenue, EBITDA, and PAT respectively (FY24-27E).

Key takeaways from analyst reports highlight:

• Strong Order Book: Siemens Energy boasts a substantial order book (₹15,100 crore as of March 1, 2025), exceeding 2.4 times its FY24 revenue.
• Market Leadership: Analysts consistently point to Siemens Energy India's market leadership and technological edge.
• Growth Potential: Projections indicate substantial revenue and profit growth over the coming years.

By 2:25 PM, Siemens Energy's share price had settled at a 5% lower circuit of ₹2,707.50 on the BSE.

Disclaimer: This information is for informational purposes only and should not be considered investment advice.