Siemens Energy India Ltd., set to list on Thursday after a demerger, has received a 'buy' call from analysts at HDFC Securities with a 15% return potential seen on the stock.
The brokerage said the company captures the maximum value among its peers as it has products cover a larger market size in decarbonisation, power generation, power evacuation, grid automation, EPC services, and clean energy like green hydrogen and battery storage.
"With the demerger, SEL becomes a power pureplay with exclusive rights for some South Asia countries (Bhutan, Nepal, Sri Lanka, and Maldives). New business lines like PEM electrolyzer, hydrogen blend fired gas turbines, and battery storage solutions will aid long-term growth as parent company has developed these technologies," the brokerage note said.
HDFC Securities highlighted Siemens Energy's robust order backlog of Rs 15,000 crore, which is 2.1 times the fiscal 2025 revenue estimate of Rs 7,162 crore.
This provides strong growth visibility with 30% profit growth projected annually in the next two years, analysts said.
HDFC Securities has placed a target price of Rs 3,000 on Siemens Energy India stock. The ex-demerger date price was Rs 2,350.
The demerger, which separated Siemens Ltd.'s energy business into Siemens Energy India, became effective on April 7, the same day as the record and ex-date. Shareholders of the parent received one share of Siemens Energy India for each share held.
The promoter holds 75% equity in the company, as per the latest shareholding data. Mutual funds own 3.51% and nearly 2.2 lakh retail investors holding nominal share capital up to Rs 2 lakh own 7.18%.
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