7 months ago
MOFSL Recommends Siemens Energy for 60% Upside
MOFSL, a brokerage firm, thinks Siemens Energy is a good stock to buy.
They say it's currently cheaper than other similar companies and has a lot of room to grow.
Siemens Energy is expanding its business in making transformers and high-voltage switchgear, which are important for electricity transmission.
MOFSL believes that the company's power transmission segment will grow faster than its power generation segment.
They also think that even though there might be some competition from Chinese companies, it won't happen immediately.
MOFSL has set a target price for the stock that is 60% higher than its current price, which means they think the stock could make a lot of money for investors.
MOFSL recommends buying Siemens Energy stock, which is currently trading at a 25% discount to Hitachi Energy.
The brokerage has set a target price of Rs 3,400, suggesting a 60% potential upside from the current market price of Rs 2,123.
Siemens Energy is expanding its capacity in transformers and high-voltage switchgear, targeting both domestic and export markets.
MOFSL expects the power transmission segment to grow at a 13% CAGR over FY25-28, while the power generation segment is expected to grow at a 10% CAGR.
The company has highlighted a strong total addressable market (TAM) of Rs 9.2 lakh crore by FY32, driven by an increase in installed power generation capacity.
- Who
- MOFSL (domestic brokerage) and Siemens Energy India Ltd
- What
- MOFSL recommends buying Siemens Energy stock for a potential 60% upside
- Where
- India and export markets
- When
- The recommendation is based on the latest note and annual report 2025
- Why
- Due to strong growth prospects in transformation capacity and a healthy outlook for export markets
Key facts
- Current Market Price
- Rs 2,123
- Target Price
- Rs 3,400
- Potential Upside
- 60%
- Valuation Discount
- 25% compared to Hitachi Energy
- Expected Growth in Power Transmission
- 13% CAGR over FY25-28
- Expected Growth in Power Generation
- 10% CAGR over FY25-28
- Total Addressable Market (TAM)
- Rs 9.2 lakh crore by FY32
Quotes
MOFSL
A domestic brokerage firm
“We expect its power transmission segment to continue to grow at a higher pace than the power generation segment. We believe that the recent uptrend in commodity prices can have a near- to medium-term impact on margins until it is passed through. In terms of easing curbs on Chinese players to bid for government contracts, our interactions with industry participants indicate that Chinese players may be required to set up capacities in India if these proposals are accepted.”
businesstoday.in
“We expect a 13 per cent CAGR in power transmission segment inflows over FY25-28. The power generation segment, contributing 46 per cent of revenue, is growing at a relatively slower pace as growth in base industries remains weak. As highlighted earlier, management expects high-single-digit growth in the power generation business. We bake in a 10 per cent CAGR in power generation segment inflows over FY25-28.”
businesstoday.in
