Jefferies has initiated coverage on Siemens Energy with a Buy rating and a target price of ₹3,500, implying a potential upside of nearly 17% from the current market price of ₹3,001.10. The brokerage expects robust earnings growth and margin expansion over the next three years, supported by operating leverage and sector tailwinds.
Jefferies projects a 50% compound annual growth rate (CAGR) in earnings per share (EPS) and a 30% revenue CAGR over FY24–27, driven by a strong order pipeline and capacity expansions in the transmission and distribution (T&D) segment.
Operating leverage is expected to drive a 460 basis points improvement in margins by FY27, making Siemens Energy one of the most profitable players in the Indian energy equipment space. The target price is based on a 65x price-to-earnings (PE) multiple on March 2027 earnings—representing a 5% discount to Hitachi, reflecting relative valuation comfort.
Jefferies sees Siemens Energy as well-positioned to capitalise on India’s growing investments in grid infrastructure and green energy.
Disclaimer: The views expressed above are those of Jefferies and do not constitute investment advice. This article is for informational purposes only.
