Motilal Oswal remains positive on Siemens Energy (ENRIN), reiterating its BUY rating while revising its target price to ₹3,400, backed by the company’s capacity expansion and long‑term market opportunities outlined in its 2025 annual report.
The brokerage noted that Siemens Energy sees strong growth prospects in India’s power transformation capacity through 2032, supported by rising domestic demand and a healthy export pipeline. The company is scaling up its facilities in transformers and high‑voltage switchgear, which will broaden its addressable market across both domestic and international geographies.
Motilal Oswal expects the power transmission segment to continue outpacing the power generation business, driven by sustained investments in grid modernisation and renewable integration. However, the brokerage highlighted that the recent rise in commodity prices could weigh on margins in the near to medium term until cost pass‑through mechanisms fully take effect.
Commenting on potential changes around Chinese manufacturers bidding for Indian government contracts, Motilal Oswal said industry interactions suggest that even if restrictions ease, Chinese players may be required to set up local manufacturing in India, undergo lengthy approvals, and secure quality certifications. Hence, any meaningful competitive impact is unlikely in the near term.
To account for elevated raw‑material costs and anticipated competition by FY28, Motilal Oswal has trimmed its FY26/27/28 earnings estimates by 4%/5%/5%. Despite these adjustments, the brokerage remains constructive on Siemens Energy’s growth trajectory, citing a robust industry outlook and strategic capacity expansions.
The revised target price of ₹3,400 is based on 55x Dec’27E EPS, reflecting confidence in the company’s long‑term earnings visibility.
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