How Did Siemens Energy Evolve as a Stock Market Giant?
Siemens India, a subsidiary of the German conglomerate Siemens AG, has been a key player in India’s industrial and technology landscape since its incorporation in 1957. It was listed on the Indian stock exchanges in 1961 and has grown into a multi-billion dollar diversified engineering company over the decades.
The company’s stock has delivered significant wealth for long-term investors. In the last 10 years (2015–2025), Siemens India’s share price has risen over 400%, reflecting strong business fundamentals and global parentage.
What Businesses Does Siemens India Operate In?
The company operates in several critical infrastructure and industrial sectors. As of FY24, its key business segments are:
| Segment | Revenue Contribution (%) |
|---|---|
| Energy (to be demerged) | 46 |
| Smart Infrastructure | 28 |
| Digital Industries | 12 |
| Mobility (Rail Solutions) | 9 |
| Others (incl. Services) | 5 |
Source: Annual Report FY24
The Energy division, contributing nearly half of the revenues, is being carved out into Siemens Energy India Limited.
How Does Siemens India Compare with Industry Peers?
Here’s how the company stacks up against Indian capital goods and industrial peers as of April 1, 2025:
| Company | Market Cap (₹ Cr) | P/E Ratio | ROE (%) | Debt-to-Equity |
|---|---|---|---|---|
| Siemens India | 1,58,700 | 68 | 19.4 | 0.02 |
| Larsen & Toubro | 5,88,500 | 30 | 15.3 | 0.50 |
| ABB India | 95,800 | 86 | 22.1 | 0.00 |
| CG Power | 72,400 | 57 | 24.8 | 0.05 |
Source: Screener
Siemens India trades at a premium valuation owing to its asset-light model, debt-free balance sheet, and diversified business profile.
Why is Siemens India Going for a Demerger?
The demerger is part of a global strategy by Siemens AG to create two focused, independent entities — one in energy and one in industrial technology.
Key Reasons:
- Business Focus: To allow each company to pursue its sector-specific strategy.
- Unlock Value: Separate listing aims to create value for shareholders.
- Capital Allocation: Independent financials allow better capital deployment.
- Global Alignment: Follows Siemens AG’s spin-off of its global energy arm in 2020.
What are the Key Dates and Structure of Siemens Demerger?
| Event | Date |
|---|---|
| NCLT Approval | March 2025 |
| Appointed Date of Demerger | March 1, 2025 |
| Effective Date | March 25, 2025 |
| Share Entitlement Ratio | 1:1 (1 share of Siemens Energy India for each share of Siemens India) |
| Listing of Siemens Energy India | Expected in Q2 FY26 (post regulatory clearances) |
Source: Economic Times
We have also done a blog on Vedanta Demerger, click on the link to read.
How Will the Demerger Impact Siemens Shareholders?
Positive Impact:
- Value Unlock: Shareholders will receive additional shares in Siemens Energy India.
- Focused Operations: Both companies can pursue distinct growth strategies.
- Clearer Financials: Easier for investors to analyze and value each business.
Potential Risks:
- Short-term Volatility: Demerger stocks often see price swings post split.
- Dependence Shift: Industrial business may lose the steady cash flow from energy division.
- Regulatory and Listing Delays: Any procedural delay can impact share price.
What Are Siemens’ Financial Highlights Before the Demerger?
| Metric | FY24 (₹ Cr) | FY23 (₹ Cr) | Growth (%) |
|---|---|---|---|
| Revenue | 20,875 | 16,137 | 29.4 |
| Net Profit | 2,380 | 1,680 | 41.7 |
| ROE (%) | 19.4 | 18.1 | +1.3 |
| Debt-to-Equity | 0.02 | 0.03 | Stable |
| Operating Margin (%) | 12.5 | 11.8 | +0.7 |
Source: Screener
What Will Be the Business Structure Post-Demerger?
Siemens India Limited (Post Demerger):
- Smart Infrastructure
- Digital Industries
- Mobility
- Services
Siemens Energy India Limited:
- Power Transmission
- Power Generation
- Grid Solutions
- Renewable Energy (Wind & Hydrogen tech collaborations)
Both will operate independently, with separate management teams.
What Are the Future Plans of Split Companies?
Siemens India:
- Focus on Digitalization & Smart Infrastructure
- Major CAPEX of ₹2,000 Cr over next 3 years
- Rail electrification & digital industries expansion
Siemens Energy India:
- Investments in renewable energy transmission
- Hydrogen energy partnerships
- Grid stability and decarbonization projects
- Possible partnerships in offshore wind solutions
Source: Business Standard
What Other Big Demerger Stocks Should Investors Watch?
The Indian market has seen many such demerger stocks creating value:
| Company | Demerged Entity | Year |
|---|---|---|
| Reliance Industries | Jio Financial Services | 2023 |
| Adani Enterprises | Adani Ports, Adani Power | 2015 |
| ITC Ltd | ITC Hotels (Proposed) | 2024 |
| Tata Motors | Tata Motors EV Business | Expected 2025 |
Investors should watch these as such splits often create focused entities and new value unlocking opportunities.
What Should Investors Track Post Siemens Demerger?
- Siemens Energy India Listing Date: Expected in Q2 FY26.
- Valuation and Trading Patterns: Initial volatility is common in demerger stocks.
- Financial Performance: Monitor quarterly results of both entities.
- Stock News & Announcements: Regularly follow stock market today updates on Siemens.
You can track the demerger updates live on:
Disclaimer: This article is purely informational and factual. It is not an investment recommendation.
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