Siemens Energy India's Dalal Street Debut: A Bright Future in the Energy Sector
Key Ideas
- Siemens Energy India (SEL) is set to debut on Dalal Street post-demerger, with a strong focus on decarbonization, power generation, grid automation, and clean energy like green hydrogen.
- With a robust order backlog of Rs 15,000 crore, SEL's profitability is evident with a 22.6% Ebitda margin for H1FY25.
- SEL's strategic positioning in India's decarbonisation landscape and focus on new technologies like PEM electrolyzers and hydrogen blend fired gas turbines showcase its commitment to growth.
- Brokerage firms like HDFC Securities and Jefferies are optimistic, forecasting strong earnings growth and recommending a 'buy' rating with target prices well above the listing price.
Siemens Energy India (SEL) is poised to make its debut on Dalal Street as a separate entity after its demerger from Siemens Ltd. The demerger saw the share price value of Siemens Energy India set at Rs 2,478 per share. SEL is highlighted for capturing maximum value among its peers due to its diverse products covering areas like decarbonization, power generation, power evacuation, grid automation, EPC services, and clean energy solutions like green hydrogen and battery storage. The company has shown impressive profitability with a 22.6% Ebitda margin for H1FY25.
Moving forward, SEL is focusing on new business lines such as PEM electrolyzers, hydrogen blend fired gas turbines, and battery storage solutions to drive long-term growth. With a strong order backlog of Rs 15,000 crore, the company enjoys solid growth visibility.
Upon listing, Siemens Energy India will be the largest listed pure-play power T&D equipment player in India, with a market capitalization exceeding $10 billion, surpassing competitors like Hitachi Energy and GE Vernova. Two leading brokerage firms, HDFC Securities and Jefferies, are bullish on SEL's prospects, projecting significant earnings growth and recommending a 'buy' rating with target prices well above the listing price.
SEL is strategically positioning itself within India's decarbonisation landscape and is set to introduce new products and services under Siemens Energy's umbrella. This includes access to global technologies for green hydrogen production, such as battery storage and PEM electrolyzers. The company's commitment to growth is further evidenced by its expansion in EPC solutions, turbines, and related services, showcasing a strong outlook for the future.
Topics
India
Renewable Energy
Stock Market
Investment
Energy Sector
Power Generation
Decarbonization
EPC Services
T&D Equipment
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