Accumulate Siemens; target of Rs 7716 Prabhudas Lilladher

Prabhudas Lilladher's research report on Siemens

Siemens (SIEM) reported healthy revenue growth of 11.3% YoY and EBITDA margin expansion of 246bps YoY. The company continues to exhibit strong order intake momentum, driven by robust demand across its Energy, Smart Infrastructure, and Mobility segments, while Digital industries continue to struggle. It is well-positioned for sustained growth on the back of government spending on infrastructure and resurgence in private capex. Additionally, the company has announced capex of ~Rs1.0bn for capacity expansion to manufacture large reactors in addition to previously announced power transformer capacity expansion. Efforts are currently underway to demerge the Energy business, a strategic move aimed at unlocking additional value for shareholders.

Outlook

The stock is currently trading at a P/E of 83.3x/68.5x on SY25/26E. We roll forward to Sep-26E and maintain our ‘Accumulate’ rating with a revised TP of Rs7,716 (Rs7,362 earlier), valuing it at a P/E of 73x Sep-26E (73x Jun-26E earlier).