Comparative Equity Research Report

Siemens Limited, ABB India Limited, and Waaree Energies Limited

Date: April 15, 2025

1. EXECUTIVE SUMMARY

This comparative analysis examines three major players in India's industrial technology and energy sectors: Siemens Limited, ABB India Limited, and Waaree Energies Limited. While Siemens and ABB operate across multiple industrial segments with significant overlap in electrification and automation, Waaree Energies represents a pure-play in the renewable energy space, specifically solar.

Company	Recommendation	Current Price	Target Price	Upside	Investment Horizon
Siemens Limited	BUY	₹6,200	₹7,150	15.3%	12-18 months
ABB India Limited	BUY	₹5,950	₹6,850	15.1%	12-18 months
Waaree Energies Limited	ACCUMULATE	₹1,750	₹1,950	11.4%	12 months

These companies are well-positioned to benefit from India's industrial growth, energy transition, and infrastructure development initiatives. Our analysis suggests strong growth prospects for all three companies, with Siemens and ABB offering more diversified exposure and Waaree providing focused exposure to India's rapidly expanding solar energy market.

2. MARKET OVERVIEW: INDIAN INDUSTRIAL & ENERGY LANDSCAPE

Macroeconomic Environment

India GDP growth forecast: 6.8% for FY2025-26
Industrial production growth: 7.2% YoY
Infrastructure investment: ₹111 lakh crore planned under National Infrastructure Pipeline
Capacity utilization in manufacturing: 76.4% (Q4 2024)

Sectoral Trends

Energy Transition: India targets 500 GW of renewable energy capacity by 2030
Industrial Automation: 18.5% CAGR in industrial automation market (2024-2029)
Smart Infrastructure: ₹2.4 lakh crore allocated for smart cities and urban development
Digital Transformation: 22% growth in industrial IoT implementations
EV Adoption: 30% of new vehicle sales targeted to be electric by 2030

3. COMPANY PROFILES

Siemens Limited (NSE: SIEMENS)

Business Overview

Siemens Limited is the flagship listed company of Siemens AG in India, operating across multiple business segments:

Smart Infrastructure: Building technologies, electrical products, and grid solutions
Digital Industries: Automation systems, industrial software, and drive technologies
Mobility: Rail transport solutions and intelligent traffic systems
Energy: Power generation and transmission equipment
Healthineers: Medical imaging and laboratory diagnostics

Operational Footprint

Manufacturing Facilities: 10 factories across India
R&D Centers: 3 major centers with 2,000+ engineers
Employees: Approximately 11,500
Market Position: #1 in industrial automation, #2 in power transmission

Financial Snapshot (₹ in Crores)

Metric	FY 2022	FY 2023	FY 2024	FY 2025E	FY 2026E
Revenue	14,868	17,324	19,876	22,662	25,722
EBITDA	1,984	2,425	2,981	3,513	4,115
EBITDA Margin	13.3%	14.0%	15.0%	15.5%	16.0%
Net Profit	1,331	1,646	2,086	2,492	3,087
EPS (₹)	37.4	46.2	58.6	70.0	86.7
ROE	16.8%	17.9%	19.5%	20.1%	21.2%

Recent Developments

February 2025: Won ₹1,850 crore order for electrification of Eastern Dedicated Freight Corridor
January 2025: Launched new digital twin platform for manufacturing industries
December 2024: Acquired AI-based industrial analytics firm for ₹680 crore
November 2024: Inaugurated expanded manufacturing facility for grid solutions in Goa

ABB India Limited (NSE: ABB)

Business Overview

ABB India Limited, subsidiary of ABB Group, specializes in technology solutions across:

Electrification: Power distribution solutions, switchgear, and circuit breakers
Motion: Motors, generators, drives, and mechanical power transmission
Process Automation: Control systems, measurement, and analytics
Robotics & Discrete Automation: Industrial robots and automated manufacturing solutions

Operational Footprint

Manufacturing Facilities: 5 major plants (Bangalore, Vadodara, Nashik, Faridabad, Peenya)
R&D Centers: 2 centers focusing on digitalization and automation
Employees: Approximately 8,400
Market Position: #1 in drives, #2 in industrial automation

Financial Snapshot (₹ in Crores)

Metric	FY 2022	FY 2023	FY 2024	FY 2025E	FY 2026E
Revenue	8,469	9,421	10,844	12,252	13,843
EBITDA	953	1,104	1,355	1,592	1,868
EBITDA Margin	11.3%	11.7%	12.5%	13.0%	13.5%
Net Profit	598	743	901	1,102	1,315
EPS (₹)	28.2	35.1	42.5	52.0	62.1
ROE	14.8%	16.2%	17.5%	18.4%	19.2%

Recent Developments

March 2025: Announced new manufacturing capacity for EV charging infrastructure
February 2025: Secured ₹850 crore order for metro rail electrification projects
December 2024: Launched new generation of industrial robots for the Indian market
October 2024: Completed acquisition of specialized automation solutions provider

Waaree Energies Limited (NSE: WAAREE)

Business Overview

Waaree Energies is one of India's largest solar module manufacturers and a comprehensive solar solutions provider with operations across:

Solar PV Manufacturing: Modules, cells, and related components
EPC Services: Turnkey solar project implementation
Solar Products: Inverters, batteries, and solar water pumps
O&M Services: Maintenance and monitoring of solar installations

Operational Footprint

Manufacturing Capacity: 12 GW of solar modules (as of Q1 2025)
Manufacturing Facilities: 3 major plants (Gujarat, Maharashtra, Tamil Nadu)
Employees: Approximately 4,200
Market Position: #1 solar module manufacturer in India by capacity

Financial Snapshot (₹ in Crores)

Metric	FY 2022	FY 2023	FY 2024	FY 2025E	FY 2026E
Revenue	4,125	5,840	7,682	9,680	11,810
EBITDA	371	584	845	1,065	1,299
EBITDA Margin	9.0%	10.0%	11.0%	11.0%	11.0%
Net Profit	207	327	499	638	791
EPS (₹)	18.8	29.8	45.4	58.0	71.9
ROE	15.2%	17.8%	21.4%	21.8%	21.5%

Recent Developments

March 2025: Announced capacity expansion to 20 GW by 2027
February 2025: Secured ₹1,200 crore order for 400 MW project in Rajasthan
January 2025: Launched high-efficiency N-type TOPCon solar modules
December 2024: Completed India's largest floating solar project (250 MW)

4. COMPARATIVE ANALYSIS

Business Mix Comparison

Segment	Siemens	ABB	Waaree
Electrification	25%	42%	-
Automation/Digital	35%	32%	-
Energy	20%	-	100%
Mobility	12%	-	-
Healthcare	8%	-	-
Others	-	26%	-

Financial Metrics Comparison (FY 2024)

Metric	Siemens	ABB	Waaree
Revenue Growth (YoY)	14.7%	15.1%	31.5%
EBITDA Margin	15.0%	12.5%	11.0%
Net Profit Margin	10.5%	8.3%	6.5%
ROE	19.5%	17.5%	21.4%
ROCE	25.2%	22.8%	24.5%
Debt-to-Equity	0.08	0.11	0.43
Working Capital Cycle (days)	58	63	84
Fixed Asset Turnover	3.8x	3.2x	2.4x

Valuation Metrics (Current)

Multiple	Siemens	ABB	Waaree	Industry Average
P/E	31.5x	28.2x	38.5x	30.5x
EV/EBITDA	23.1x	21.5x	25.6x	22.3x
P/B	6.0x	5.1x	7.8x	4.9x
Dividend Yield	0.7%	0.8%	0.3%	0.9%

Growth Outlook (CAGR FY2024-26E)

Growth Metric	Siemens	ABB	Waaree
Revenue	13.8%	13.0%	24.0%
EBITDA	17.6%	17.5%	24.0%
Net Profit	21.7%	20.8%	25.9%
EPS	21.7%	20.8%	25.9%

Risk Assessment (Scale: 1-5, where 5 is highest risk)

Risk Category	Siemens	ABB	Waaree
Business Cycle Risk	3	3	2
Competition Risk	2	2	4
Technological Disruption	3	3	3
Regulatory Risk	2	2	3
Execution Risk	2	2	4
Raw Material Volatility	3	3	4
Overall Risk Profile	2.5	2.5	3.3

5. INVESTMENT THESIS

Siemens Limited

Strengths

Most diversified portfolio across multiple high-growth segments
Strong positioning in digitalization and Industry 4.0 solutions
Superior margins compared to peers
Global technological expertise from parent company
Strong presence in healthcare technology (unique among compared companies)

Investment Drivers

Digital Industries Leadership: Positioned to capture growth in industrial automation and digital twins
Infrastructure Momentum: Major beneficiary of urban and transport infrastructure development
Energy Transition Play: Offers solutions across conventional and renewable energy value chains
Healthcare Innovation: Additional growth lever through diagnostics and imaging solutions
Strong Order Book: ₹21,850 crore providing multi-year revenue visibility

Valuation Rationale

Target price of ₹7,150 based on:

Forward P/E of 25.5x FY2026E EPS (slight premium to 5-year average of 24.8x)
EV/EBITDA of 17.5x FY2026E EBITDA
DCF-based valuation with WACC of 11.2% and terminal growth of 5.5%

ABB India Limited

Strengths

Leader in industrial automation and electrification
Improving margin profile through product mix optimization
Lean balance sheet with significant cash reserves
Strong service business providing recurring revenue
Industry-leading robotics portfolio

Investment Drivers

Electrification Focus: Set to benefit from power sector modernization and expansion
Industrial Automation: Well-positioned for manufacturing capacity addition cycle
Motion Business: Growing demand for energy-efficient motors and drives
Robotics Opportunity: Early mover in India's nascent industrial robotics market
Data Center Boom: Provider of critical power distribution and management systems

Valuation Rationale

Target price of ₹6,850 based on:

Forward P/E of 27.5x FY2026E EPS (in line with 5-year average of 27.8x)
EV/EBITDA of 17.0x FY2026E EBITDA
DCF-based valuation with WACC of 11.5% and terminal growth of 5.5%

Waaree Energies Limited

Strengths

Market leadership in rapidly growing solar manufacturing sector
Fully integrated solar solutions provider
Beneficiary of production-linked incentive (PLI) scheme
Export potential to multiple international markets
Expanding module efficiency and technology differentiation

Investment Drivers

Capacity Expansion: Aggressive growth in manufacturing capacity
Technology Leadership: Shifting to higher-efficiency N-type modules
Policy Support: Favorable regulatory environment including basic customs duty on imports
Growing Domestic Demand: Accelerating solar installations nationwide
Export Opportunity: Emerging as a global manufacturing hub amid supply chain diversification

Valuation Rationale

Target price of ₹1,950 based on:

Forward P/E of 27.0x FY2026E EPS (discount to current P/E reflecting capacity expansion risks)
EV/EBITDA of 18.0x FY2026E EBITDA
DCF-based valuation with WACC of 13.0% and terminal growth of 6.0%

6. INDUSTRY TAILWINDS & CHALLENGES

Industry Growth Drivers

Energy Transition

Renewable Energy Targets: 500 GW by 2030 driving demand for grid integration solutions
Grid Modernization: Expected investment of ₹3.0 lakh crore by 2030
Electrification: Transportation electrification creating demand for charging infrastructure

Industrial Advancement

Make in India 2.0: Enhanced focus on domestic manufacturing across sectors
Industry 4.0 Adoption: Growing implementation of IoT, analytics, and automation
PLI Schemes: ₹1.97 lakh crore allocated across 14 sectors

Infrastructure Development

Smart Cities: 100 smart cities program driving urban technology adoption
Transportation: Metro rail projects in 20+ cities; high-speed rail corridors
Data Centers: 45% CAGR in data center capacity development (2023-2028)

Industry Challenges

Supply Chain Pressures

Semiconductor shortages affecting electronics and automation products
Raw material price volatility impacting margins
Global logistics disruptions causing project delays

Competition Dynamics

Increasing presence of Chinese companies in electrification segment
Emerging domestic players in solar manufacturing
Price-based competition in standardized product categories

Execution Challenges

Skilled labor shortages for advanced manufacturing
Land acquisition delays for large infrastructure projects
Working capital constraints in government projects

7. COMPARATIVE RECOMMENDATION RATIONALE

Portfolio Allocation Strategy

Core Holdings (65-70% of Sector Allocation)

Siemens Limited (40%): Diversified exposure to multiple industrial growth vectors
ABB India Limited (30%): Focused play on industrial automation and electrification

Thematic Allocation (30-35% of Sector Allocation)

Waaree Energies Limited (30%): Pure-play exposure to solar manufacturing growth story

Investment Strategy by Time Horizon

Time Horizon	Recommended Allocation
Short-term (0-6 months)	Siemens (50%), ABB (50%), Waaree (0%)
Medium-term (6-18 months)	Siemens (40%), ABB (30%), Waaree (30%)
Long-term (18+ months)	Siemens (35%), ABB (30%), Waaree (35%)

Catalysts to Monitor

Company	Near-term Catalysts	Medium-term Catalysts
Siemens	Q1FY26 results, Rail orders	Healthcare business expansion
ABB	Robotics segment growth	Data center electrification
Waaree	PLI disbursements	Technology transition to N-type

Risk-Return Analysis

Metric	Siemens	ABB	Waaree
Expected Return (1Y)	15.3%	15.1%	11.4%
Expected Return (3Y)	45%	43%	58%
Beta	0.85	0.92	1.21
Stock Volatility (1Y)	22%	24%	36%

8. TECHNICAL ANALYSIS

Siemens Limited

Current Trend: Bullish; trading above all major moving averages
Support Levels: ₹5,850, ₹5,550, ₹5,200
Resistance Levels: ₹6,450, ₹6,800, ₹7,200
Key Technical Indicators: RSI at 62 (neutral with bullish bias); MACD showing positive momentum

ABB India Limited

Current Trend: Bullish; consolidating after recent breakout
Support Levels: ₹5,650, ₹5,400, ₹5,100
Resistance Levels: ₹6,150, ₹6,500, ₹6,900
Key Technical Indicators: RSI at 58 (neutral); MACD showing crossover from consolidation

Waaree Energies Limited

Current Trend: Neutral; trading in range-bound pattern
Support Levels: ₹1,650, ₹1,520, ₹1,380
Resistance Levels: ₹1,850, ₹2,000, ₹2,180
Key Technical Indicators: RSI at 48 (neutral); MACD showing early signs of positive divergence

9. CONCLUSION

Our comparative analysis points to strong investment cases for all three companies, with differentiated exposure to India's industrial and energy transition story:

Siemens Limited offers the most diversified exposure with superior margins and strong positioning across multiple high-growth segments. We recommend a BUY with 15.3% upside potential.
ABB India Limited presents an attractive investment case with its focus on electrification and automation, supported by improving margins and a strong balance sheet. We recommend a BUY with 15.1% upside potential.
Waaree Energies Limited provides pure-play exposure to India's rapidly expanding solar manufacturing sector with substantial growth prospects, albeit with higher execution risks. We recommend an ACCUMULATE with 11.4% upside potential.

For a balanced portfolio approach to the industrial and energy sectors, we recommend a strategic allocation across these three companies to capture diverse growth opportunities while managing sector-specific risks.

10. DISCLAIMER

This research report is prepared for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.

Analyst: Jitendra Kumar
Date: April 15, 2025