Accumulate Siemens; target of Rs 3431: Prabhudas Lilladher

Prabhudas Lilladher's research report on Siemens

Siemens (SIEM) reported a mixed quarterly performance with revenue growing by 15.5% to Rs43.5bn while EBITDA margin contracted by 82bps YoY to 12.1% due to higher other expenses. Healthy order inflows lifted the order book to Rs428.5 bn, driven by two large Mobility orders, reaffirming its core growth role. Execution ramp-up in Smart Infrastructure, aided by resilient demand from electrification, T&D, utilities, semiconductors, and data centers. Management pointed to early signs of demand recovery in Digital Industries as destocking winds down, though Low Voltage Motors continues to face headwinds from demand normalization and pricing pressure. We revise our FY26/FY27 estimates by -3.9%/-1.2% factoring in the slower execution pace in the LV and Digital segments, which is impacting on the overall margin profile.

Outlook

We maintain ‘Accumulate’ rating with a TP of Rs3,431 (Rs3,233 earlier), valuing the stock at a PE of 53x Mar’27E (53x Sep-26E earlier). The stock is currently trading at a PE of 60.8x/51.8x on SY25/26E.