Shares of Siemens India are lower for a sixth day on December 24, continuing to reel under the aftermath of the management’s commentary from last week, having already entered correction territory with a fall of over 16% record high.
In early trade, the shares are down by more than 2%, off highs of the year but still up by 66% on YTD basis.
On December 20, the share registered its sharpest fall since June 2024 after the management said during its December quarter earnings call that it is not looking at participating in HVDC tenders with LCC technology. A Line-Commutated Converter (LCC) is a device to convert alternating current (AC) into direct current (DC) and vice versa, and are commonly used in High-Voltage DC (HVDC) systems. The fineprint disappointed investors, leading to a sharp fall in the share price on December 20.
The company expects government capex to revive from January onwards, however, the private sector capex still remains subdued, it added. During the call, Siemens India also cited the manufacturing PMI indicator, which rebounded in October from nine-month lows as new orders and international sales fuelled growth. Siemens India said the rebound will help the manufacturing space, which has seen an easing of activity over last three months.
The company is in the process of demerging its energy business which is expected to complete in the second half of 2025. Ex of energy business, capex recovery becomes a crucial factor in Siemens India's growth projections, said HDFC Securities.
UBS has a neutral rating on the stock, while Elara and Nuvama have Accumulate and Hold rating, respectively. Antique has maintained a buy call on Siemens India citing growth opportunities. HDFC Securities has a buy rating with a target price of Rs 8114. Read More
Siemens India expects orders in the locomotive segment to improve going forward, including those for Vande Bharat train sets, Metro and signalling related orders. The company has also planned a Rs 1,100 crore investment over next two years to ramp up capacity in transformers and transmission segment.
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