1 week Ago By Anirudh Saligrama
Siemens Ltd.’s soon-to-be-listed energy business—Siemens Energy India Ltd.—is expected to post earnings per share growth at twice the pace of the remaining business, driven by a sharp rise in India’s power sector investments, according to brokerage firm Jefferies.
The research firm said that India’s power capex is likely to rise 2.5 times to more than $300 billion between fiscal 2024 and 2030, compared with fiscal 2017 to 2023, and Siemens’ energy business is seen as a key beneficiary of the $100 billion-plus transmission capex pipeline. Meanwhile, Power Grid Corp.
has pegged the current bid pipeline at Rs 52,000 crore, with more projects expected, Jefferies said, adding that Siemens is investing Rs 460 crore to double its power transformer capacity.Siemens Energy India Likely To List One Month After Demerger: Nuvama Jefferies said that based on the current market price of the ex-Energy business, the energy business would trade at 34 times fiscal 2027 earnings estimates, implying a value of Rs 2,116 per share. Its earlier pre-demerger valuation had implied 61 times earnings multiple, translating to Rs 3,743 per share.
The demerger of Siemens’s energy business into Siemens Energy India took effect on April 7, which was both the record date and the ex-date. Under the terms of the demerger, shareholders will receive one share of the new company for each Siemens Ltd. share held.
Siemens Ltd. shares hit a 20% upper circuit on the ex-date. The new energy entity is expected to list within 30 to 90 days from the record date.
Siemens Stock Projected To See 56% Upside By JefferiesJefferies adjusted its price target on Siemens from Rs 3,586.89 to Rs 3,300 and valued the ex-Energy business at 50 times fiscal 2027 earnings estimates. That marks a 9% discount to the brokerage’s target multiple for peer ABB India.
The stock is currently trading at 63 times March 2025 earnings, 55 times March 2026 earnings estimates, and 43 times fiscal 2027 earnings estimates, Jefferies said. It also lowered its ex-Energy EPS estimate by 3–5%, citing potentially lower electrification and smart infrastructure revenues after the demerger.Fifteen out of 25 analysts tracking Siemens have a ‘buy’ rating on the stock, while five each have ‘hold’ and ‘sell’ ratings, according to Bloomberg data.
The average Bloomberg consensus price target of Rs 3,382.06 implied a potential upside of 20.3% from Monday’s close.
Siemens Energy Demerger: All You Need To Know. Read more on Markets by NDTV Profit..
