Siemens is back in the spotlight after two major brokerages – JM Financial and Nomura released fresh recommendations on the stock. Both reports revolve around the company’s decision to sell its Low Voltage Motors (LVM) business, a division that has been struggling for years. But their recommendations present a split picture where one sees modest upside, while the other has a more cautious stance.
Siemens exits a long-struggling business
The management of Siemens has approved the sale of its Low Voltage Motors (LVM) unit to Innomotics India, a subsidiary of Innomotics GmbH, owned by KPS Capital Partners in the United States. The estimated value of the transaction is around Rs 22,000 crore (enterprise value).
According to the brokerage reports, this business has seen steadily weakening performance. The segment’s revenue fell from Rs 1,060 crore in FY22 (Financial Year 2022) to Rs 967 crore in FY25 (Financial Year 2025), while profit after tax (PAT) dropped sharply from Rs 132 crore to Rs 35 crore during the same period.
Let’s take a look at the brokerage take on this stock –
JM Financial on Siemens: ‘Add’ rating, 10.75% upside potential
JM Financial has taken a positive but measured view on the stock. The brokerage has maintained an ‘Add’ rating, setting a 12-month target price of Rs 3,480. This indicates a 10.75% upside potential .
JM Financial believes the sale removes a drag on financial performance. According to the brokerage report, “The sale of the LVM business for INR 22bn (EV) brings closure to a long-struggling entity within SIEM.”
The report also noted that a previous attempt to divest the division had failed, but given its continued weakness, the decision now appears necessary. The brokerage noted that after minority shareholders rejected the first proposal in July 2023, fresh investments into the business had stopped, leading to further decline.
Further the brokerage house added, “The elimination of the business from Jun’26 is positive from an EBITDA margin-accretion perspective, in our view.”
JM Financial also says the sale adds value because the business had become technologically outdated. The brokerage added, “We were assigning only Rs 40/sh value in our analysis, so the sale is value-accretive, in our view.”
JM also highlighted why it prefers Siemens over competitor ABB (Asea Brown Boveri) – ordering momentum remains strong and there is room for margin improvement in the next two years. The stock currently trades at 51 times FY27 estimated earnings per share, which the brokerage considers reasonable relative to peers.
Nomura on Siemens: ‘Neutral’ rating, 3.77% upside potential
Nomura has taken a more cautious view. The brokerage has maintained a ‘Neutral’ rating with a target price of Rs 3,325. This translates to a 3.77% upside from the current price of Rs 3,204.
According to the brokerage report, “Over the past several years, the LVM business has experienced subdued revenues and declining profitability.”
Nomura believes the sale aligns with Siemens’ long-term goal of strengthening its technology-led portfolio. However, it also pointed out that the unit contributed only about 1 percent to its valuation estimate, making the sale financially small but helpful in reducing uncertainties.
The brokerage added, “Although this portfolio has historically supported end-to-end motor solutions, it no longer represents a synergistic fit with Siemens’ broader strategy.”
Nomura’s valuation framework includes different divisions such as Smart Infrastructure, C&S Electric, Digital Industries and Mobility, each assigned a separate price-to-earnings ratio.
Siemens – Overall outlook
Therefore, one brokerage house recommends Add while the other one suggests ‘Neutral’ rating. While one is focussing on the long-term goal of strengthening its technology-led portfolio, the other bets big on the order pipeline.