Motilal Oswal Financial Services (MOSL) has maintained its Buy rating on Siemens Energy and raised the target price to ₹3,300 from an earlier level, implying a potential upside of 10% from the current market price of ₹3,001.10. The upgrade follows better-than-expected Q2FY25 and H1FY25 financial results and strong margin performance.
The company reported a 24% quarter-on-quarter rise in revenue during Q2, with operating margins improving to 19.1%. MOSL highlighted that this margin expansion has been consistent over the past two quarters, even after adjusting for one-off items, signalling improving core profitability.
The brokerage has raised its earnings estimates by 13% for FY25, 6% for FY26, and 8% for FY27, citing strong demand visibility in the transmission and distribution (T&D) space. Siemens Energy is expected to benefit from a large and growing addressable market, especially as India ramps up its power infrastructure.
Planned capacity expansion in the transmission segment is also expected to support growth. MOSL estimates a revenue CAGR of 27% and profit CAGR of 29% for the company over FY25–27, reinforcing confidence in its structural growth trajectory.
Disclaimer: The views expressed above are those of Motilal Oswal Financial Services and do not constitute investment advice. This article is for informational purposes only.
