Accumulate Siemens; target of Rs 7362: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Siemens with a target price of Rs 7362 in its research report dated August 12, 2024.

Broker Research

August 13, 2024 / 12:54 IST

Accumulate

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Siemens

We revise our SY24E EPS estimate by -2.2% factoring in slightly lower execution during the year. Siemens (SIEM) reported muted revenue growth of 6.8% YoY and EBITDA margin expansion of 166bps YoY. Despite continued weakness in Digital Industries order intake, total order inflows remain healthy driven by the Smart Infra, Energy, and Mobility segments. Demand is expected to sustain on the back of the government’s focus on infrastructure capex along with an uptick in private capex. In order to cater to the growing demand, the company has announced over Rs10bn capex this year to expand capacities in power transformers, vacuum interrupters, gas insulated switchgears, and metro train manufacturing. 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) value-unlocking from demerger for Energy business.

Outlook

The stock is currently trading at a P/E of 99.4x/78.9x/65.4x SY24/25/26E. We roll forward to Jun-26E and maintain our ‘Accumulate’ rating with a revised TP of Rs7,362 (Rs7,030 earlier), valuing it at a P/E of 73x Jun26E (73x Mar-26E earlier).

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