Siemens Energy India (ENRIN IN) – Management Meet Update – Long-term growth story remains intact – Upgrade to ‘BUY’

We recently interacted with the management of Siemens Energy India (ENRIN). The management believes ENRIN is well positioned to benefit from the structural power transmission and generation upcycle, supported by strong domestic demand and rising global opportunities. The transmission business offers a broad product suite across transformers, switchgear, substations and grid-stabilization solutions, with rising renewable integration and grid complexity driving demand for higher value solutions such as HVDC and STATCOM. Export opportunities are also gaining traction, with ENRIN increasingly serving as a global manufacturing base for Siemens Energy, particularly in transformers, while the US remains a key opportunity market. On the generation side, gas services and engineering, research and development (ER&D) offer attractive growth potential, supported by a growing installed base, while steam turbines are benefiting from industrial decarbonization, waste-heat recovery and thermal power opportunities. ENRIN’s diversified exposure across products, solutions and services, coupled with higher margin export and service opportunities, should support healthy growth and margin resilience. With capacity expansion underway in transformers and switchgear, and strong order visibility across transmission and generation, SEIL is well placed to capture the multi-year electrification and energy-transition opportunity, although execution and timing of large orders remain key monitorable. The stock is currently trading at 55.8x/45.3x on SY27E/SY28E. We roll forward to Sep’28E and upgrade our rating from ‘Accumulate’ to ‘BUY’ given healthy multi-year growth visibility, supported by strong transmission demand, rising export opportunities and increasing contribution from higher margin services, with revised TP of INR3,655 (INR3,434 earlier), valuing the stock at PE of 53x Sep’28E (55x Mar’28E earlier).