Jefferies has reiterated its ‘Buy’ rating on Siemens Energy, raising optimism after the company delivered a stellar Q3FY25 performance, sharply beating estimates across key metrics. The brokerage has set a target price of ₹3,500, implying an upside from the current market price of ₹3,235.50.
Margin surprise drives 46% EBITDA beat
Siemens Energy reported EBITDA margins at 19.1%, which was 448 basis points higher than Jefferies’ estimates, leading to a 46% EBITDA beat for the quarter. Net profit came in at ₹260 crore, marking a 63% beat over estimates and a robust 80% year-on-year increase.
Strong order momentum fuels growth visibility
The company also reported exceptional order inflows, with Q3 order flow up 94% YoY at ₹3,300 crore, and nine-month FY25 order flow rising 66% YoY to ₹10,800 crore. Jefferies noted that the strong order book, backed by India’s robust power capex pipeline, provides high visibility for future earnings.
Earnings outlook: 50% EPS CAGR ahead
Driven by operating leverage and margin expansion, Jefferies expects Siemens Energy to deliver a 50% compound annual growth rate (CAGR) in earnings per share (EPS) over the coming years.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Takeaways |
|---|---|---|---|
| Jefferies | Buy | ₹3,500 | Q3 EBITDA beat 46%, PAT up 80% YoY, strong order flow, 50% EPS CAGR outlook |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.