Brokerage firm DRChoksey has initiated coverage on Siemens Energy Ltd. with a 'Buy' rating and set a target price of ₹4,554, implying a potential upside of 41% from the current market price of ₹3,230. According to the report, the brokerage believes the company is well positioned to benefit from India's next phase of power sector investment, driven by rising electricity demand, renewable energy integration, industrial electrification and large-scale transmission infrastructure spending. The brokerage has not factored HVDC into the target price, while new HVDC VSC orders and nuclear energy provide additional upside optionality.
The brokerage expects Siemens Energy's revenue, EBITDA and PAT to grow at 25%/33%/35% CAGR over the next three years, backed by an orderbook of ₹19,300 crore providing two times revenue visibility. As reported by DRChoksey, the company currently trades at a discount compared to its peers, trading at ~43x FY28E compared to its peers at 60x FY28E, with the brokerage assigning a multiple of 60x PE on FY28 EPS of 75.90. The top 10 Heavy Power Equipment companies trade at 90x average.
According to the report, Siemens Energy India holds a 30% market share in high-voltage direct current (HVDC) technology, where it is among the few players in the country. The brokerage also noted its strong position in grid-stabilisation solutions, including STATCOMs, where it commands more than 50% market share. The company's transmission business is expected to be the primary growth driver, with DRChoksey highlighting it as a key play on the country's transmission and generation opportunity.
The brokerage expects India to enter a multi-year transmission capex cycle as renewable capacity additions accelerate and power demand continues to rise. As reported by DRChoksey, it estimates that nearly ₹7.93 trillion of transmission investments may be required over FY26-FY36, creating significant opportunities across transformers, switchgear, substations and grid-stabilisation solutions. The company's diversified portfolio spans grid infrastructure, power generation, services and engineering research and development.
