Synopsis: Nuvama has initiated coverage on Siemens Energy India with a ‘Buy’ rating, expecting a 28% EPS CAGR over FY26–FY28, supported by a strong T&D project pipeline, upcoming HVDC opportunities, and attractive valuations relative to peers.
The shares of this are one of the leading energy technology providers, delivering integrated solutions across power generation and transmission systems are in the spotlight after brokerage initiated a Buy rating, expecting 28% EPS CAGR over FY26–FY28.
With a market capitalisation of Rs. 1,22,377 cr, the shares of Siemens Energy India Ltd were trading at Rs. 3436.40 per share, increasing over 1% in today’s market session, making a high of Rs. 3,459, up from its previous close of Rs. 3,412.20 per share. The stock has gained 12% over the past year, surged 35% year-to-date, and advanced 48% in the last six months, though it has declined 9% over the past month.
What’s the News
Nuvama has initiated coverage on Siemens Energy India with a ‘Buy’ rating and a target price of Rs 4,200, citing the company’s strong growth prospects despite trading at a valuation discount to its peers. The brokerage believes the market has not fully priced in the potential of upcoming High Voltage Direct Current (HVDC) projects.
According to Nuvama, the Power Transmission & Distribution (T&D) segment, which accounts for around 65% of the company’s order inflow, will continue to be the primary growth driver. Meanwhile, the Power Generation business, contributing the remaining 35% of order inflow, provides an additional avenue for diversified growth.
The brokerage expects Siemens Energy India to deliver 28% EPS CAGR and 29% return on equity (RoE) over FY26–FY28. It also noted that the company offers peer-like growth at a discounted valuation, making it an attractive play on India’s expanding power infrastructure and transmission investment cycle.
Order Book
It reported a 22.2% year-on-year increase in its order backlog to Rs. 18,430 crore in H1 FY26, up from Rs. 15,080 crore in the corresponding period last year. The growth was driven by strong order inflows across both the Power Transmission and Power Generation segments, providing healthy revenue visibility.
During the period, the company secured several key orders in the transmission business, including a bulk transformer order for 13 units of 500 MVA, 765 kV to strengthen the national grid, GIS equipment for a large renewable energy pooling station in Gujarat, a large transformer export order for a U.S.-based renewable energy company, and a 400 kV GIS substation project in Bhutan to support regional grid expansion.
On the power generation and services front, Siemens Energy India won orders for capital spares for a major thermal power plant in Maharashtra, gas turbine services for a large offshore oil field, a long-term maintenance program (LTP1) for one of India’s largest fertilizer companies, and a 4.8 MW waste heat recovery (WHR) solution for a cement manufacturer in Northeast India, highlighting its focus on industrial efficiency and decarbonisation.
Siemens Energy India Ltd is one of the leading power technology companies engaged in providing equipment, solutions, and services across the power value chain. The company operates in Power Transmission & Distribution and Power Generation, offering products such as transformers, switchgear, grid automation systems, gas turbines, and industrial energy solutions.
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