Summary
- Siemens Energy India, the demerged T&D arm of
Siemens Ltd, listed on Indian stock exchanges on Thursday.
- It opened at ₹2,850 on BSE and ₹2,840 on NSE, a ~15%
premium to the discovered price.
- Despite a strong start, profit booking pushed the stock
down nearly 4% on Day 1.
- Analysts project a positive long-term outlook, citing a
strong order book, high-margin business, and India's rising power
infrastructure needs.
- Brokerages like Jefferies, HDFC Securities, and Motilal
Oswal have issued Buy ratings with target prices up to ₹3,700.
A Power Debut: Siemens Energy Makes a Splash on Dalal Street
On June 19, 2025, Indian stock
markets witnessed the much-anticipated listing of Siemens Energy India Ltd,
the recently demerged entity from Siemens Ltd. The company focuses on Transmission
and Distribution (T&D) solutions—key components in India’s rapidly
growing power sector.
The stock opened at ₹2,850 on the BombayStock Exchange (BSE) and ₹2,840 on the National Stock Exchange (NSE),
both at a substantial premium of nearly 14.5% over the discovered price
of ₹2,478.20.
But what started as a power-packed
debut soon turned into a day of mild disappointment for some investors. After
hitting an intraday high near its upper circuit limits—₹2,992.45 on BSE
and ₹2,982 on NSE—the stock slipped by 3.92%, closing at ₹2,738.35 on
BSE.
The NSE also mirrored this sentiment
with the stock ending near its day's low of ₹2,707.50.
Why Did Siemens Energy Stock Decline After Listing?
Despite a strong listing and
enthusiasm, the stock saw profit-booking by early investors. Analysts suggest
that the dip was not due to fundamentals, but rather a common post-listing
phenomenon where traders lock in short-term gains.
Let’s break it down:
| Reason | Details |
|---|---|
| Profit Booking | Investors who received shares via demerger or bought pre-listing sold for quick gains |
| Market Sentiment | Volatility in broader indices may have impacted investor mood |
| Lack of Clarity | Retail investors might not fully understand Siemens Energy’s standalone business post-demerger |
| No IPO “Hype” | Since this was a demerger listing, not a traditional IPO, less retail buzz was seen |
The Business Behind the Ticker: What Is Siemens Energy India?
Siemens Energy India is a pure-play
power transmission and distribution company, carved out from the
engineering giant Siemens Ltd in April 2025.
Key
Areas of Operation:
- High Voltage Direct Current (HVDC) Transmission
- Grid Modernization
- Smart Infrastructure Solutions
- Renewable Grid Integration
- Energy Automation and Management Systems
This demerged entity now focuses on
a niche yet mission-critical segment of India’s energy infrastructure.
Market Capitalization: A New Giant in Power T&D
At listing, Siemens Energy India
commanded a market cap of ₹82,500 crore (~$10 billion), instantly making
it the largest listed pure-play power T&D company in India.
This places it ahead of global rivals operating in India:
| Company | Market Cap (Approx.) |
|---|---|
| Siemens Energy India | $10 Billion |
| Hitachi Energy | $9.6 Billion |
| GE T&D | $6.8 Billion |
CEO's Statement: A Commitment to India’s Energy Future
Guilherme Mendonca, Managing Director & CEO of Siemens Energy India,
addressed the listing with optimism:
“With this listing we reaffirm our
long-standing commitment to India’s energy future. The demerger allows us to
sharpen focus and innovate in the transmission and distribution sector.”
Analysts Are Bullish: Here’s What They’re Saying
While Day 1 saw a minor dip, most
brokerage houses remain extremely bullish on the stock.
Jefferies: ₹3,700 Target Price
Global brokerage Jefferies
expects:
- 40% CAGR
in earnings between FY24–FY27
- High-margin projects in HVDC transmission
- Strong global support from Siemens AG
“Siemens Energy India is a
capital-efficient, high-growth entity positioned well for the energy transition
era.”
HDFC Securities: ₹3,000 Target Price
According to HDFC:
- India needs ₹1.2 trillion in HVDC investment
- Only ₹250 billion of this has been awarded so
far
- Siemens Energy is well placed to win a large share
“The business has strong cash flow,
robust order book, limited competition, and export potential.”
Motilal Oswal: ₹3,000 Target Price
Motilal Oswal estimates:
- Revenue CAGR: 25% from FY25–FY27
- PAT CAGR: 31%
- EBITDA Margin: Expand to 21.4% by FY27
It warns, however, that ordering
slowdowns and supply chain challenges could impact margins.
What Makes Siemens Energy a Strategic Stock?
1.
Core Infrastructure Focus
India’s electricity grid needs
constant modernization. As renewable energy expands, T&D becomes the critical
backbone. Siemens Energy sits at the center of this transformation.
2.
High-Barrier Industry
Power T&D, especially HVDC
systems, require significant capital, tech expertise, and regulatory
approvals—limiting new entrants.
3.
Parent Support
Siemens AG and its subsidiaries hold
75% stake in Siemens Energy India, ensuring financial and technological
support.
|
Shareholding
Pattern |
|
Siemens AG & Subsidiaries |
|
Free Float |
India's Power Infrastructure: Why It Matters
India has committed to achieve 500
GW of renewable energy by 2030. With this shift, the need for efficient,
loss-less power transmission is massive.
Transmission
Bottlenecks Are Real
Even if India adds solar/wind
capacity, without efficient transmission, electricity can't reach
consumers. HVDC is the answer.
The HVDC Opportunity: Siemens’ Big Bet
HVDC (High Voltage Direct Current)
is the future of power transmission—lower losses, longer range.
Siemens’
Opportunity:
|
Technology |
Addressable
Market |
|
VSC-based HVDC |
₹0.3 Trillion |
Only a small fraction of this has
been tapped yet, and Siemens Energy India is among the leading bidders.
| Metric | FY25 (Projected) | FY27 (Projected) |
|---|---|---|
| Revenue | ₹8,000 Cr | ₹12,500 Cr |
| PAT | ₹1,050 Cr | ₹2,000 Cr |
| EBITDA Margin | 18% | 21.4% |
Financial Snapshot & Forecast (Estimated)
Siemens Energy Stock NSE Performance Tracker
| Date | NSE Price | BSE Price | Change |
|---|---|---|---|
| June 19, 2025 (Listing) | ₹2,840 | ₹2,850 | +14.5% over discovered price |
| Closing Price | ₹2,738.35 | ₹2,738.35 | -3.92% from open |
| Intraday High | ₹2,982 | ₹2,992.45 | Hit Upper Circuit |
What Should Retail Investors Do?
For long-term investors with a 2–3
year horizon, Siemens Energy India offers a unique blend of stability,
growth, and relevance.
Pros:
- High growth sector
- Backing from Siemens AG
- Clear export and domestic opportunities
- Strong margin profile
Cons:
- Not a “cheap” stock
- Dependent on govt. orders
- Any delay in power projects could hit revenue
Expert Opinions
"A rare chance to invest in a
pure-play power transmission company with global pedigree and domestic growth
runway." — Anand Rathi, Market Analyst
"If you missed out on Siemens
Ltd before, Siemens Energy gives you another bite of the cherry." — Equitymaster
Research Desk
Conclusion: A Temporary Dip in a Long-Term Story
The debut of Siemens Energy stock
on NSE and BSE may have ended in red, but the long-term picture is
undeniably green. With a robust business model, futuristic tech applications
like HVDC, and strong parentage, Siemens Energy India is poised to be a leader
in India's energy infrastructure race.
For investors with patience and
vision, this could be the beginning of an electrifying journey.
FAQ – Siemens Energy Stock NSE
Q1. What is Siemens Energy India?
A: It's the demerged power transmission and distribution business of Siemens
Ltd, listed in June 2025.
Q2. What was the listing price of
Siemens Energy stock?
A: ₹2,850 on BSE and ₹2,840 on NSE.
Q3. Why did Siemens Energy stock
fall on listing day?
A: Mainly due to profit booking and broader market sentiment.
Q4. What is the future outlook for
Siemens Energy stock?
A: Analysts like Jefferies, HDFC Securities, and Motilal Oswal expect 25–40%
CAGR growth and have given target prices between ₹3,000–₹3,700.
Q5. Is Siemens Energy a good
long-term investment?
A: Yes, for those looking to invest in India's energy infrastructure theme.
0 Comments