*Siemens Energy India* – India's Largest T&D Pure Play Lists June 19 | Jefferies Deep Dive - Jefferies calls it India’s largest listed T&D pure-play with 15,000 Cr order book, explosive upside as infra tailwinds align. - Here's your insight-packed breakdown ⤵️ 1⃣ Largest Power T&D Player in India 🔹Demerged from Siemens Ltd on Apr 7, 2025 🔹Implied reference price: ₹2,478 🔹Expected listing range: ₹2,995 – ₹3,711 🔹Market cap to exceed $10 Bn – ahead of Hitachi ($6.8 Bn) & GE Vernova ($9.6 Bn) 2⃣ Massive Transmission Capex Tailwinds 🔹FY25 saw ₹1.5 Lakh Cr worth of transmission project awards 🔹FY24: just ₹39,500 Cr 🔹India’s overall power infra capex to rise 2.5x to $300 Bn+ by FY30 🔹Siemens Energy is core OEM for transformers, switchgear & HV infra 3⃣ Underutilization = Operating Leverage Optionality 🔹Current capacity utilization <60% 🔹High fixed cost absorption yet to kick in 🔹₹460 Cr capex underway to double power transformer capacity 🔹Full benefits likely to reflect from FY26E onward 4⃣ Strong Order Flow & Visibility 🔹FY25 (Apr–Aug): ₹5,100 Cr new orders 🔹FY24: ₹8,800 Cr order inflow 🔹Order Book as of Mar 2025: ₹15,100 Cr 🔹That’s 2.4x FY24 revenue – strongest visibility in the industry 5⃣ Key Financial Estimates (FY24 → FY27E) 🔹Revenue: ₹6,345 Cr → ₹8,175 Cr → ₹10,853 Cr → ₹15,164 Cr 🔹EBITDA: ₹992 Cr → ₹1,336 Cr → ₹1,917 Cr → ₹2,950 Cr 🔹Net Profit: ₹884 Cr → ₹1,088 Cr → ₹1,571 Cr → ₹2,404 Cr 🔹PAT CAGR: 40% over FY24–27E 🔹EBITDA Margin: Expanding from 15.6% → 19.5% ⬆️ Margin Expansion Story + Underutilized Capacity = Operating Leverage Goldmine 6⃣ Valuation Benchmarking vs Peers – Room to Rerate 🔹Hitachi Energy PE (Mar-27E): 66x 🔹GE Vernova T&D PE (Mar-27E): 54x 🔹Jefferies assigns Siemens Energy 60x PE → Target: ₹3,350 (55x Mar-27E EPS) 🔹Sub-₹3,000 listing offers high margin of safety + growth optionality 7⃣ Jefferies View – Full Cycle Participation 🔹Strong growth + infra visibility = compounding engine 🔹High capex, low utilization, and margin leverage all align 🔹“Below ₹3,000 offers healthy upside potential” – Jefferies 🧭 Investors Compass Insight 🔹This isn’t just a demerger, it's India’s infra flywheel being unlocked 🔹With Biggest T&D Tailwind buildout ahead, Siemens Energy is poised to lead