Siemens Energy Share Price: Motilal Oswal Maintains 'Buy', Hikes Target Price Post Q2 Results — Here's Why

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Motilal Oswal Report

Siemens Energy India Ltd. reported Q2 FY25/H1 FY25 financials, which were better than our estimates. The comparable numbers for the previous period are not available. Revenue growth improved 24% QoQ and Ebitda margin stood strong at 19.1% for the quarter, driven by strong margins in the power transmission segment.

Margins were soft in the power generation segment. Ebitda margin has been continuously improving for the company for the past two quarters even after adjusting one-off items. Based on H1 FY25 performance, we raise our estimates by 13%/6%/8% for FY25E/FY26E/FY27E to bake in improved execution and margin in the power transmission segment.

We expect Siemens Energy to continue to benefit from a strong addressable market in T&D as well as its planned capacity expansion in the transmission segment.

Accordingly, we estimate a CAGR of 27%/29% in revenue/PAT over FY25-27. Retain Buy with a revised target price of Rs 3,300 (from Rs 3,000), based on 60x Sep’27E EPS.

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