Siemens Energy share price falls 5%: Market reacts after demerger
Demerger & Share Listing
On April 7, 2025, Siemens Ltd demerged its energy division into a standalone entity—Siemens Energy India—issuing 1 share for every 1 existing share. The new entity received ~35.6 crore shares and was slated to list between May and July 2025 .
The demerger allowed Siemens to streamline its operations into clearly defined segments: industrial automation (Siemens Ltd) and energy systems (Siemens Energy India). This structural separation was aimed at unlocking precise valuations and fostering focused growth .
Market Debut: Strong start, sharp retreat
Opening & upper circuit
- Opening price (BSE): ₹2,850
- Quickly hit a 5% upper circuit at ₹2,992.45
- On NSE, it listed at ~₹2,840—up ~14% from its discovery price of ₹2,478
Profit-booking pressure
Later trading saw a 5% drop from the listing level:
- NSE low: ₹2,700
- BSE low: ₹2,707.50
This volatility reflects typical post-IPO price corrections after an initial surge.
Table: Key Price Metrics & Volume
| Indicator | Value |
|---|---|
| NSE Listing Price | ₹2,840 |
| NSE Upper Circuit High | ₹2,982 (~+5%) |
| NSE Intraday Low | ₹2,700 (~–5%) |
| BSE Opening & High | ₹2,850 → ₹2,992.45 |
| BSE Intraday Low | ₹2,707.50 |
📊 Order Book & Financial Overview
Before the demerger (FY24):
- Revenue: ₹6,280 crore
- EBITDA Margin: ~15.7%
- Net Profit: ₹710 crore
- Order Book: ~₹10,050 crore by Dec 2024, with fresh orders at ₹8,800 crore.
Post-listed attention on Q1 FY25:
- Order inflow: ₹5,100 crore in the first five months
- Total order book: ₹15,100 crore (~2.4× FY24 revenue).
Strategic Outlook & Analyst Perspectives
Leading brokers have issued optimistic forecasts:
| Brokerage Firm | Rating | Target Price (₹) | Basis / Multiplier |
|---|---|---|---|
| Jefferies | Buy | 3,700 | 55× P/E (Mar 2027 est), EPS CAGR ~40% FY24–27 |
| Motilal Oswal | Buy | 3,000 | Margin: 21.4% by FY27, EPS CAGR ~31% |
| HDFC Securities | Buy | 3,000 | PAT CAGR ~30% FY25–27 |
| Antique Stock Broking | Buy | 3,179 | Revenue/EBITDA/PAT CAGR: 22/30/35% |
Why positive sentiment?
- India’s accelerated transmission capex pipeline (>$100 billion)
- Low facility utilisation offers margin upside
- Strong order backlog ensures medium-term growth
Risks to monitor:
- Rising working capital needs—growing backlogs may strain cash flow.
- Global macro sentiment or execution delays might pressure margins
On-Chain Buzz: Tweet on Listing & Price Move
A notable reaction from the finance community on X:
What This Means for Investors
- Short-term traders may find opportunities in post‑listing volatility.
- Long‑term investors benefit from structured growth backed by government capex and analyst buy calls at ~₹3,000–3,700.
- Value unlock through demerger sharpens financial clarity—investors can now pick energy or industrial automation bets independently.
Final Thoughts of linesbull
Siemens Energy share price falls 5% after listing is a reflection of typical normalization following a sharp debut surge. Underpinned by strong order backlog, diversified projects, and upbeat brokerage outlooks, the stock shows promise—especially for those investing in India’s energy infrastructure boom. However, investors should stay aware of near-term execution risks and evolving working capital cycles.
