Accumulate Siemens; target of Rs 1401: Prabhudas Lilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Siemens

Steady performance: Revenues were up 12% YoY (10% comparable) to Rs32.8bn (PLe:Rs30.7bn) in the quarter. The Energy Management, Building Technologies and Digital Factory segments drove growth (up 21%, 9%, and 18.5% YoY respectively); all other segments reported decline in sales YoY. EBITDA was up 16% YoY to Rs3.2bn. Margins improved by 30bps YoY to 9.8% (PLe:10.7%). PAT was up ~18% YoY to Rs2.2bn led by higher other income and reduction in the Interest Cost (~47%) (PLe: Rs2.2bn).

Outlook

The stock is trading at 37.8x and 35.5x Sept ‐ 19 and Sept ‐ 20 earnings. We believe that once the economic recovery sets in, we will start to see significant order inflows leading to earnings upgrades. Focus on cost optimization and localization should help competitiveness, which, in turn, will help SIEM once the market recovers. Given its wide portfolio, the company is best placed to benefit from recovery in capex cycle as and when it happens. We expect the company to deliver earnings CAGR of 17% over CY17 ‐ 20E. We rate the stock as ‘Accumulate’

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