Siemens Energy Drops 5% After Strong Debut, Is This a Buying Opportunity?

June 19, 2025: After a solid listing on Dalal Street post-demerger, Siemens Energy India shares saw a swift change in momentum — surging initially, then slipping into the red. The stock listed at ₹2,840 on the NSE, 14% above its discovered price of ₹2,478.20, and quickly hit the 5% upper circuit at ₹2,982. But profit-booking set in, dragging the price down 5% to ₹2,700 apiece.

A similar trend was seen on the BSE, where the shares opened at ₹2,850 and touched a high of ₹2,992.45 before falling to ₹2,707.50.

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The listing marks the completion of Siemens India’s demerger of its power transmission and distribution (T&D) business, which was finalized on April 7. The new entity, Siemens Energy India, is being closely tracked by investors, analysts, and institutions alike.

According to Jefferies, Siemens Energy is now India’s largest listed pure-play T&D equipment company. The brokerage expects a 40% CAGR in earnings per share (EPS) between FY24–FY27, fueled by a robust T&D order pipeline and underutilized capacity that provides operating leverage. The firm has given a ‘Buy’ rating with a target price of ₹3,700, valuing it at 55x its projected March 2027 EPS.

Motilal Oswal Financial Services also sees upside and pegs the stock at a 60x multiple, targeting ₹3,000 by September 2027. They highlight Siemens’ strong margin profile and edge in upcoming high-voltage direct current (HVDC) project wins, especially compared to peers like Hitachi Energy and GE Vernova.

HDFC Securities initiated coverage with a ‘Buy’ call and ₹3,000 target, forecasting a 30% PAT CAGR from FY25–FY27 and noting Siemens Energy’s broader market reach in the T&D sector.

Antique Stock Broking projects a 22% revenue CAGR, 30% EBITDA CAGR, and 35% PAT CAGR for Siemens Energy India during FY24–27. With a target price of ₹3,179, they value the company at 65x FY27 EPS, citing its technology strength, product diversity, and dominant market position.

As of 2:25 PM on Thursday, the stock was locked at the 5% lower circuit at ₹2,707.50 on the BSE, raising the big question: Should investors buy this dip?

While the recent drop may worry short-term traders, long-term investors seem to have reasons to remain optimistic based on strong fundamentals, high growth potential, and analyst confidence.

Note: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.