Siemens stock rises to 52-week high as March quarter results beat estimates; brokerages raise target prices

As per the scheme of arrangement, shareholders of Siemens will receive one share of Siemens Energy India for every one share of Siemens. The new entity will subsequently be listed on the BSE and NSE.

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The demerger is likely to be completed in the next calendar year. InCred analysts believe that the demerger will create two strong independent companies focusing on their core activities.

Siemens has given total capex guidance of Rs 1,000 crore for its GIS factory and other mobility capex. For FY24 and FY25, InCred has raised its revenue estimates by 2 percent and 7 percent, respectively, factoring in the strong capex and order inflow led by digital penetration, government capex.

It also raised earnings estimates by 15 percent and 23 percent, respectively, factoring in higher other income.

The brokerage retained an 'Add' rating on Siemens stock with a higher target price of Rs 7,565 (Rs 4,400 earlier), valuing it at 75x Mar 2026F (from 60x Sep 2025F) EPS. Any slowdown in the order inflow is a downside risk, it said.

Jefferies has also issued a buy call on Siemens, raising the target price to Rs 8,000 per share as the company's EBITDA increased by 11 percent in the March quarter, driven by improved revenues and margins. Looking ahead, analysts anticipate Siemens benefiting from significant power transmission capex ordering.

They believe that this capex should result in operating leverage surprises with higher capacity utilisation.

Siemens is one of the most diversified industrial product/solutions companies in India with exposure to a wide range of industries including power, steel, cement, hydrocarbons, factories & building technologies, automation/digitalization, etc.

Also Read | Siemens March quarter consolidated net profit jumps 70% to Rs 803 crore on higher execution

Nuvama expects the company to significantly scale up in new areas like digital and factories & building technologies, which will boost growth and operating margin given the high growth potential and scope for value addition.

"The stock’s re-rating will be a function of structural shift in revenue stream to more short-cycle/high-returns yielding business including global leverage on recently acquired C&S business," the brokerage said as it placed a 'buy' rating on the stock with a revised target price of Rs 7,700, up from Rs 5,500 earlier.

Flagging the key risks, Nuvama analysts said a slowdown in key infra verticals including T&D, transportation, hydrocarbon etc., could impact Siemens’ overall business growth. The company has reasonable exposure to export markets and hence a sustained slowdown in key export markets, including the Middle East, could impact growth estimates, it said.

Additionally, since parent’s strategy has a direct bearing on Siemens’ domestic business positioning. Any significant decision with respect to business verticals could impact future growth potential and valuations, Nuvama added.

Motilal Oswal remains positive on Siemens, as the company is a direct play on the transmission and HVDC-related spending over the next few years. "It is also rightly positioned to capture the railway-related opportunities," the brokerage said as it maintained its 'buy' rating on the counter with a revised target price of Rs 7,800, up from Rs 6,050 earlier)

At 12:16 pm, Siemens shares were trading 6.6 percent higher at Rs 7,100.40 on NSE. So far this year, the stock has skyrocketed 76 percent, far outpacing the 2 percent return delivered by benchmark Nifty 50. According to Bloomberg data, 17 analysts have a 'buy' call, 5 have a 'hold', and 5 have a 'sell' rating on the stock.

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