Siemens Ltd stock fell nearly 3% to Rs 3732.45 after the company announced its April-June quarter results, which met estimates of some brokerages, but fell short of others’ expectations. Siemens consolidated revenue rose 14% to Rs 48.7 billion on-year. Owing to base business orders, up by nearly 11% on-year, the company’s order inflows also grew 5.9% on-year for the April-June quarter. Siemens share price has surged over 20% in the last six months, and nearly 32% year to-date. Analysts at ICICI securities and HDFC securities have recommended an ‘Add’ rating on Siemens stock, whereas Prabhudas Lilladher has recommended an ‘Accumulate’ stock rating.
Should you buy, sell or hold Siemens Ltd?
HDFC Securities
Add | Target price: Rs 3979
“Supported by a healthy mix of orders both from the government and private sector, especially in infrastructure and railways. With this, the implied order book stands at INR 210bn (+4% QoQ). Given the strength in order inflows and robust order backlog, we maintain ADD rating, with an increased TP of INR 3,979 (rolled over to 50x Jun-25 EPS).”
ICICI Securities
Add | Target price: Rs 4190
“Siemens remains the best play with a strong product suite to participate in the capex uptick across new factories, transmission and mobility (driven by new locomotive and Vande Bharat tenders). Additionally, the outlook on base orders remains favourable. We estimate a 20% CAGR in earnings over FY22-FY25E and reinitiate coverage with an ADD and SOTP-based target price of INR 4,190 per share.”
Prabhudas Lilladher
Acuumulate | Target price: Rs 4241
“The stock is currently trading at PE of 69.7x/63.4x/53.5x SY23/24/25E. We maintain Accumulate rating on stock with TP of Rs4,241 (Rs4018 earlier), valuing it at PE of 60x SY25E (57x earlier), factoring in strong outlook and focus on high growth areas such as digitalization, Automation & energy efficiency product offerings.”