Siemens India jumps 5%, biggest single-day gain in six months, as brokerages see gains from robust order inflows

The company's revenue from operations meanwhile rose over 16 percent YoY to Rs 5,171.2 crore during the quarter under review, as against Rs 4,457 crore in Q2 FY25.New orders grew 10.5 percent to Rs 4,800 crore.

Siemens Managing Director and Chief Executive Officer Sunil Mathur said that digital industries volumes were impacted due to a lower reach in the order backlog from the previous year and muted private sector Capex. The profit was impacted by one-time gain of Rs 69 crore from the sale of property in Q4 FY2024, he added.

"While Government spending in Capex in Infrastructure continues, with recent measures to boost consumption through easing of Income Tax rates and GST reforms, we have seen an uptick in consumption during the festive period. We remain cautiously optimistic that this trend will continue in future quarters ultimately leading to a pickup in private sector Capex," he added.

PL Capital on Siemens:

PL Capital raised its target price for the stock to Rs 3,470 apiece from Rs 3,431 apiece, while maintaining its 'Accumulate' rating. This implies an upside potential of more than 11 percent from the stock’s previous closing price.

The domestic brokerage said that Siemens reported a decent quarter, driven by strong execution in Smart infrastructure and the mobility business, whereas Digital Industries remained soft, weighed down by a lower carry-forward order backlog and muted private capex.

“Despite short term cautious stance on private/ industrial capex, we believe SIEM to sustain long-term growth given 1) continued traction in public capex in areas like T&D, Metro, railways, utilities etc. 2) its strong and diversified presence across industries through focus on electrification, digitalization & automation, 3) product localization, 4) strong balance sheet, and 5) value-unlocking from demerger for Energy business,” it added.

JM Financial on Siemens:

JM Financial kept an 'Add' call on the stock, with a target price of Rs 3,440 apiece. This implies an upside potential of more than 11.5 percent from the stock’s previous closing price.

The domestic brokerage said that the firm’s topline exceeded its estimated by 8 percent, but EBITDA beat was smaller at 5 percent on demerger linked costs. “PAT beat was a modest 2% on higher tax and lower other income. Order inflows continue to be robust relative to peer ABB India at 10% though missed our estimate by 5%, it noted.

"We believe strong prospects in data centres and building automation can continue to support SI related order inflows. Further, DI segment may be at its trough in our view both in terms of ordering and margins. We expect normalization on both fronts (ordering and DI margins) from FY27E (Mar’27 ending)," it added.

Motilal Oswal on Siemens:

Motilal Oswal Financial Services kept a 'Neutral' rating on the stock, with a target price of Rs 3,350 per share. This implies an upside potential of nearly 9 percent from the stock’s previous closing price.

"Siemens delivered a revenue beat, while profitability came in slightly below our estimate. Segment wise, smart infra and mobility did well in terms of revenue, while the digital industry remained weak on both revenue and margin fronts. This resulted in a lower-than-estimated overall EBITDA margin," it said.

"Due to weaker-than-expected margins, we cut our future margin assumptions and roll forward our TP to INR3,350, premised on 45x P/E Dec’27 estimates. We reiterate our Neutral rating on the stock as we await a broad-based scale-up in inflows and execution. Our estimates already bake in margin improvements across segments," the domestic brokerage further said.

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