Siemens Energy may see up to $180 million in outflows after MSCI exit
ADVERTISEMENT Global index provider MSCI will delete Siemens Energy India from its Global Standard Index (Large Cap segment), effective post-market close on June 20. The exit, Nuvama notes, could trigger 'estimated passive outflow in the range of USD 170–180 million,' although the brokerage added that a more accurate estimate would be available once the stock begins trading.
'If stock trades at lower circuit then implementation will get postponed,' Nuvama had said.
Siemens Energy India began trading on Thursday, June 19, after being spun off from Siemens Ltd earlier this year. The stock was listed at Rs 2,850 and quickly hit the 5% upper circuit at Rs 2,992.45 on the BSE, bolstered by investor optimism around the company's role in India's expanding power transmission and distribution (T&D) sector.The shares are currently part of the 'T' Group—meaning they will be settled on a trade-for-trade basis for the first ten trading sessions, limiting intraday speculation.
ADVERTISEMENT While MSCI exclusion is expected to lead to sizable passive outflows, Siemens Energy's removal from domestic indices such as the NSE and BSE early next week is likely to be more muted. 'The outflows here are expected to be minimal due to its negligible weight and passive tracking will be lower,' Nuvama said, adding that more clarity would follow the first day of trade. The brokerage is also monitoring how FTSE will respond post-listing.Despite the risk of outflows, brokerages remain bullish on Siemens Energy's long-term prospects.
ADVERTISEMENT Jefferies estimates nearly 30% upside potential with a target price of Rs 3,700, calling it 'India's largest listed pure-play power T&D equipment player at $10 billion+ market cap.' The brokerage forecasts a 40% EPS CAGR over FY24-27E, citing a strong T&D pipeline and operating leverage.Motilal Oswal resumed coverage with a target of Rs 3,000 and a 'Buy' rating, projecting a 25%/31% CAGR in revenue and PAT over FY25-27 and an EBITDA margin expansion to 21.4% by FY27. 'Margins have already started expanding in 5MFY25,' the brokerage noted.
ADVERTISEMENT HDFC Securities echoed the optimistic outlook, citing Siemens Energy's diversified offerings in power generation, green hydrogen, and grid automation, as well as exclusive rights in South Asia. It sees a 30% PAT CAGR supported by robust cash flows and innovative technologies.Siemens Energy India was demerged from Siemens Ltd in April 2025. The newly listed company focuses on transmission, distribution, and small- to mid-sized turbines. Its offerings range from 250 MW industrial turbines to 800 MW utility-scale generators, and includes power transformers up to 765 kV and EPC services.
ADVERTISEMENT The firm is expected to benefit from India's planned Rs 3 trillion transmission investments through FY30, especially in high-voltage (400 kV and 765 kV) segments. Capex plans include Rs 4.6 billion for doubling transformer capacity, Rs 3.3 billion for GIS units in Goa, and Rs 0.6 billion for vacuum interrupters—some of which will cater to export markets.
Also read | Siemens Energy shares zoom 5%, hit upper circuit post listing. Brokerages project 30% upside
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
13 minutes ago
- Business Standard
Foxconn saga: Recall of Chinese workers hits India's iPhone manufacturing
With the recall of the Chinese workforce, the effort to transfer technology built by Apple has been interrupted at Indian plants premium Surajeet Das Gupta New Delhi Listen to This Article At a time when the automobile industry is coping with the shortage of heavy rare earth magnets, sourced primarily from China, Taiwanese contract manufacturer Foxconn Hon Hai has delivered a blow to manufacturing of Apple products in India. Ahead of the iPhone 17 launch, which was supposed to have brought India centre stage in Apple's global supply chain, Foxconn has ordered hundreds of Chinese technicians and engineers to leave the Indian factories and return home. While there's no official reason for the recall, people in the know explained that it was at behest of the Chinese government, which has a
Mint
38 minutes ago
- Mint
India-US interim trade deal: New Delhi draws red lines as Trump's deadline approaches, says ball in Washington's court
With India setting its red lines on key issues in sectors such as agriculture and dairy for the proposed interim trade agreement with the US, the ball is now in Washington's court to finalise the deal, sources said. They said if issues are settled, an interim trade pact could be announced before July 9, which marks the end of the 90-day suspension period of the Trump tariffs announced on April 2 on dozens of countries, including India. "India has drawn its red lines... now the ball is in the US court," a PTI report quoted sources as saying. The two countries announced in February that they will be starting negotiations for a bilateral trade agreement (BTA) by September-October this year. However, before that, India and US are locking to finalise the interim trade pact. On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from this 26 per cent tariff. "If the proposed trade talks fail, the 26 per cent tariffs will come into force again," one of the sources said. Commerce Minister Piyush Goyal last week stated that India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest. Free Trade Agreements (FTA) are possible only when both sides get benefitted and it should be a win-win agreement, he said. "National interest should always be supreme. Keeping that in mind, if a deal is made then India is always ready to deal with developed countries," Goyal said on July 4. The Indian team returned from Washington last week after holding talks with the US on an interim trade pact. Differences are also there on steel, aluminium (50 per cent) and auto (25 per cent) tariffs. India has hardened its position on giving duty concessions to the US on agriculture and dairy products as both are sensitive subjects. India has never opened the dairy sector in any of the previous trade pacts signed. US President Donald Trump last week said his administration is sending letters to the first batch of 10-12 countries, sharing details of reciprocal tariff rates and the entire process could be completed by July 9. His comments came amid increasing suspense in India on whether New Delhi and Washington would be able to firm up a much-anticipated trade deal before the US president's tariff deadline ends. He has, however, not named the countries. The president has stated that the reciprocal tariffs would come into effect from August 1. While the US is looking at duty concessions in sectors like certain industrial goods, automobiles (electric vehicles particularly), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts, and alfalfa hay; India may look at duty cuts for labour-intensive sectors like apparels, textiles, gems and jewellery, leather, plastics, chemicals, oil seeds, shrimp, and horticulture products. US tariffs will kick in on August 1 if trading partners from Taiwan to the European Union do not strike deals with Washington, Treasury Secretary Scott Bessent said Sunday. The rates will "boomerang back" to the sometimes very high levels which President Trump had announced on April 2 – before he suspended the levies to allow for trade talks and set a July 9 deadline for agreement, Bessent told CNN. According to an AFP report, Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on August 1. Well, that's pretty early. Right?" The tariffs were part of a broader announcement in April where Trump imposed a 10 per cent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days. But he swiftly paused the hikes until July 9, allowing for trade talks to take place. Countries have been pushing to strike deals that would help them avoid these elevated duties. So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products. Bessent said the administration was "close to several deals." "I would expect to see several big announcements over the next couple of days," he said. But he would not say which countries he was referring to, adding: "I don't want to let them off the hook." (With inputs from agencies)
&w=3840&q=100)
Business Standard
42 minutes ago
- Business Standard
Ball in Washington's court on India-US interim trade pact before July 9
With India setting its red lines on key issues in sectors such as agriculture and dairy for the proposed interim trade agreement with the US, the ball is now in Washington's court to finalise the deal, sources said. They said if issues are settled, an interim trade pact could be announced before July 9, which marks the end of the 90-day suspension period of the Trump tariffs announced on April 2 on dozens of countries, including India. "India has drawn its red lines... now the ball is in the US court," they said. In February, the two countries announced starting negotiations for a bilateral trade agreement (BTA). They fixed a deadline to conclude the first tranche or phase of the BTA by fall (September-October) this year. Before that, the two sides are locking to finalise an interim trade pact. On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from this 26 per cent tariff. "If the proposed trade talks fail, the 26 per cent tariffs will come into force again," one of the sources said. Commerce Minister Piyush Goyal last week stated that India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest. FTAs are possible only when both sides get benefitted and it should be a win-win agreement, he has said. "National interest should always be supreme. Keeping that in mind, if a deal is made then India is always ready to deal with developed countries," Goyal had said on July 4. The Indian team returned from Washington last week after holding talks with the US on an interim trade pact. Differences are also there on steel, aluminium (50 per cent) and auto (25 per cent) tariffs. India has hardened its position on giving duty concessions to the US on agriculture and dairy products as both are sensitive subjects. India has never opened the dairy sector in any of the previous trade pacts signed. US President Donald Trump last week said his administration is sending letters to the first batch of 10-12 countries, sharing details of reciprocal tariff rates and the entire process could be completed by July 9. His comments came amid increasing suspense in India on whether New Delhi and Washington would be able to firm up a much-anticipated trade deal before the US president's tariff deadline ends. He has, however, not named the countries. The president has stated that the reciprocal tariffs would come into effect from August 1. While the US is looking at duty concessions in sectors like certain industrial goods, automobiles (electric vehicles particularly), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts, and alfalfa hay; India may look at duty cuts for labour-intensive sectors like apparels, textiles, gems and jewellery, leather, plastics, chemicals, oil seeds, shrimp, and horticulture products. The US is India's largest trading partner from 2021-22. During 2024-25, the bilateral trade in goods stood at $131.84 billion ($86.51 billion worth of exports, $45.33 billion of imports and $41.18 billion trade surplus). India's merchandise exports to the US rose 21.78 per cent to $17.25 billion in April-May this fiscal year, while imports rose 25.8 per cent to $8.87 billion. The two-way trade in services expanded from $54.1 billion in 2018 to an estimated $70.5 billion in 2024. India is also a key destination for American businesses such as professional, scientific, and technical services, manufacturing, and IT. The US accounts for about 18 per cent of India's total goods exports and over 6 per cent in imports and about 11 per cent in bilateral trade. India received $70.65 billion between April 2000 and March 2025, making Washington the third largest investor. In 2024, India's main exports to the US included drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), gold and other precious metal jewellery ($3.2 billion), ready-made garments of cotton, including accessories ($2.8 billion), and products of iron and steel ($2.7 billion). Imports included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal, coke ($3.4 billion), cut and polished diamonds ($2.6 billion), electric machinery ($1.4 billion), aircraft, spacecraft and parts ($1.3 billion), and gold ($1.3 billion).
