Accumulate Siemens; target of Rs 4359: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Siemens with a target price of Rs 4359 in its research report dated December 23, 2023.

Broker Research

December 23, 2023 / 20:49 IST

Accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Siemens

We recently attended Siemens India’s (SIEM) analyst meet where management highlighted that India is a core focus for the parent, Siemens AG, given it is their fastest growing market. Strong economic indicators, stable inflation & interest rates and softening commodity prices augur well for a healthy capex environment in the country. Robust public capex on infrastructure (with 70-80% of the budgeted outlays being implemented) will be augmented by a take-off in private capex, which will fully kick-in when capacity utilization reaches 80-85% (vs 75-80% currently and 52-53% precovid). PLI schemes further benefit the company by enabling customers to incur additional capex. Key opportunities lie in areas of digitalization & automation, cybersecurity, data centers, railways, renewable energy, power transmission & distribution. We remain positive on SIEM from a long-term perspective given 1) its strong and diversified presence across industries through focus on electrification, digitalization & automation, 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 a PE of 63.0x/54.5x SY24/25E. We maintain our ‘Accumulate’ rating on the stock with a TP of Rs4,359 (Rs4,241 earlier), valuing it at PE of 60x SY25E (same as earlier).

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