Siemens: Weak outlook on HVDC, Railways

Muted performance in the LV business (smart infrastructure, including discoms capex and private capex in digital infrastructure). Given the limited near-term catalysts in HVDC and railways, we are revising down our FY25E/26E/27E EPS estimates by 9%, 15%, and 11%, factoring in slower HVDC order inflows and operating margins of 14%. Consequently, we downgrade Siemens to "Hold," with a TP of ₹7,000, valuing the stock at 65x FY27E EPS of ₹106.

A key trigger—chunky orders—now delayed.

Energy segment: It largely constitutes HVDC and HV transformers and switchgears, and other products. Currently, there are only one to two projects (Pang-Kaithal in Leh & Khavda-South Olepad), which could use voltage source converter technology.