Target: ₹3,482
CMP: ₹2,907.70
We attended Siemens Energy India (SEL) analyst day, where the management articulated a strategy that capitalises on its unique position at the confluence of India’s energy growth and the global energy transition. SEL is strategically positioned in the high-growth power transmission (T&D) business and stable power generation & services. Exports (23 per cent of FY25 revenue) are largely driven by T&D products like transformers whilst services (about 26 per cent of FY25 revenue) is driven by Gas/Steam turbines installation in India. SEL power generation manufacturing is driven by domestic industrial steam turbines demand of average 25 MW size.
Larger steam turbines are imported whilst gas turbines spares are also sourced from parent to service current installed base in India. Power transmission has largely been localised except for HVDC IGBT components/semiconductors which are imported. HVDC pipeline looks robust with LCC-based HVDC awarding expected at one-two projects/year whilst one VSC project is expected every two years. SEL will bid for VSC projects only which implies it needs to focus more on base business wins and rely on higher exports mandate from parent. Other technologies /products like PEM electrolysers, synchronous condensers and storage solutions will be imported for now. SEL sees big opportunity on the nuclear power side where it expects to supply steam turbines. Given the strong cash flows, robust order book, export opportunities and limited competitive intensity, we maintain BUY rating on SEL with a TP of ₹3,482/share (60x September 27E EPS). Bid pipeline remains strong and new awards are expected to pick pace in the next few quarters.
Published on December 11, 2025
