Siemens shares gain 3% as robust Q3 earnings enthuse investors

Multinational conglomerate Siemens has reported upbeat third quarter earnings, jacking up its shares by nearly 3 percent on February 15.

At 11.01am on Wednesday, Siemens was trading at Rs 3,202.75 on the National Stock Exchange, up 2.49 percent from the previous close.

The company's net profit showed significant growth of 85.1 percent on-year, reaching Rs 462.7 crore. Revenue also saw an on-year increase of 17.4 percent, totaling Rs 4,015.1 crore in the October-December period.

The robust quarterly performance can be attributed to strong growth across segments, which was supported by continued capital expenditure across verticals. Operational performance also improved as EBIDTA margin witnessed an expansion to 14.9 percent in October-December from 10.5 percent a year back.

The company's operational performance was aided by strong volumes, price hikes, lower input costs, and forex gains. Additionally, order inflows increased 6 percent on-year.

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Brokerage firm Prabhudas Lilladher maintains a positive stance on Siemens and has raised its target price for the stock by 2 percent to Rs 3,310. The brokerage has an 'accumulate' rating for the stock.

"We remain positive on Siemens from a long-term perspective, given its strong and diversified presence across industries, focus on digitisation and automation products, product localisation, strong balance sheet, healthy public and private capex, and focus on cost efficiencies," the brokerage wrote in a report.

Analysts at ICICIdirect also remain bullish on Siemens, as they expect the company to further strengthen its leadership position through the penetration of automation and digitisation products and services across segments.

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