Deven Choksey starts coverage of Siemens Energy India with Buy and Rs 4,554 target

what happened

According to Moody's, brokerage Deven Choksey Research has begun covering Siemens Energy India shares, assigning a Buy recommendation and a price target of Rs 4,554. That level suggests 72% upside from the Rs 2,649 close on Friday, October 23. The shares fell 4.4% that day and have lost close to 20% over the past month.

The analysts base their view on India's transmission spending: the national grid plan from the Central Electricity Authority, aiming at 900 GW of non-fossil capacity, implies about Rs 7.93 lakh crore of transmission capex between FY26 and FY36. The company is estimated to hold roughly 30% of the HVDC segment and more than half of the STATCOM market. The target applies 60 times the FY28 EPS estimate of Rs 75.90.

Revenue is projected to climb from Rs 78,267 million in FY26 to Rs 154,529 million in FY28, while the order book, at Rs 193 billion as of Q3FY26, could reach Rs 271 billion by FY28. The brokerage also flagged risks such as commodity and currency swings, delays in grid spending and pricing pressure.

why it matters

For markets, the note is a signal about demand for grid and power-equipment makers in India rather than a sector-wide call. The report says the order book would cover about twice the revenue, yet the stock has dropped roughly 15% over the past year, so investors will watch the gap between the brokerage target and the current price closely.

tags

instruments