Jefferies on Siemens Energy India

Jefferies has maintained a ‘Buy’ rating on Siemens Energy India with an upgraded target price of ₹3,500, implying a 21% upside. The global brokerage expects the company to deliver a 50% CAGR in EPS from FY24–FY27 , driven by a robust domestic power capex pipeline and margin expansion through operating leverage. Post-demerger, Siemens Energy is fully focused on its energy business and stands to benefit from India’s over $100 billion transmission capex plan . It was awarded ₹1.5 lakh crore in transmission bids in FY25 , up from ₹39,500 crore in FY24. Revenue is projected to grow at a 34% CAGR through FY24–FY27 . Despite similar valuations (65x) FY27 compared to peers like Hitachi Energy (68x) and GE Vernova T&D (55x), Jefferies sees potential for margin improvement as plant utilisation rises and fixed costs decline. The firm also highlights that Siemens Energy's strong technology base, eight Indian manufacturing units, and expanding product portfolio position it well to capture market share in India’s growing energy infrastructure space.