Accumulate Siemens; target of Rs 4241: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Siemens with a target price of Rs 4241 in its research report dated November 29, 2023.

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November 29, 2023 / 22:03 IST

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26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Siemens

Siemens (SIEM) reported healthy quarterly performance with consolidated revenue up ~24.7% YoY. EBITDA margin expanded 100bps YoY to 12.1%, owing to lower other expenses despite gross margin contraction. We believe that strong traction is likely to continue in high growth verticals such as data centers, railways, chemicals & pharma, e-mobility, waste heat recovery, smart infra, intralogistics, building automation, decarbonization, T&D etc. Siemens announced capex of ~Rs4.2bn toward capacity expansion of power transformers (from 15000MVA to 30000MVA by Dec2025 with capex worth Rs3.6bn) and Vacuum Interrupters (from 40000 VI tubes to 70000 VI tubes by H22026 with capex of Rs560mn) to meet the growing demand in India and globally. Current capacity utilization of power transformer/ vacuum interrupter stand at ~100%/95%, respectively owing to strong demand. We remain positive on SIEM from a long-term perspective given 1) its strong and diversified presence across industries through focus on electrification, digitization & automation products, 2) product localization, 3) strong balance sheet, 4) healthy public & private capex and 5) focus on cost efficiencies.

Outlook

The stock is currently trading at PE of 61.1x/51.6x SY24/25E. We maintain Accumulate rating on stock with TP of Rs4,241 (same as earlier), valuing it at PE of 60x SY25E, factoring in strong outlook and focus on high growth areas such as digitalization, Automation & energy efficiency product offerings.

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