The brokerage has initiated a ‘BUY’ rating on the stock with a 12-month price target of ₹4,200, citing strong growth potential in its power transmission business, export opportunities and a long-term opportunity from high-voltage direct current (HVDC) projects.
The brokerage noted that SEIL is trading at a discount around 50x FY28E earnings, compared with 60x for peers, despite expectations of a 28% earnings CAGR between FY26 and FY28 and return on equity (RoE) of around 29%, Nuvama said.
The brokerage expects SEIL’s financial performance to improve steadily over FY26-28E, with revenue projected to rise from ₹95,778 million in FY26E to ₹153,945 million by FY28E. EBITDA is estimated to increase from ₹20,113 million to ₹33,098 million during the same period, while adjusted profit is seen growing from ₹15,244 million to ₹24,964 million.
The brokerage said SEIL’s power transmission business, which contributes around 65% of operating income, remains the key growth driver. The company is expected to benefit from India’s estimated ₹7.93 lakh crore transmission capex opportunity between FY26 and FY36, driven by the country’s non-fossil energy roadmap.
SEIL’s portfolio across transformers, switchgear, STATCOMs, VSC-HVDC and grid solutions places it in a strong position to participate in this expansion, the report said.
Exports are also emerging as an additional growth lever, contributing 28.5% of H1FY26 revenue compared with 23.5% a year ago. The brokerage attributed this growth to Siemens Energy’s global network.
The company’s power generation business, which contributes around 35% of operating income, provides exposure to industrial steam turbines, services and thermal fleet modernisation.
Siemens Energy India Ltd shares closed at ₹3,406 on July 16, 2026, down 2.61% or ₹91.40 on the NSE.
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