Siemens Share Price Rises For Fourth Straight Session On Continued Post-Demerger Momentum

Shares of Siemens Ltd. rose on Thursday, extending its advance for the fourth straight session. In April so far, the stock has risen nearly 9%, while it has declined over 13% this year.

On Tuesday, Siemens Energy India Ltd. allotted 35.6 crore equity shares to shareholders of Siemens Ltd., following the company’s demerger scheme. The allotment, carried out in a 1:1 ratio, was approved by the Listing Committee on April 14.

The demerger, which separated Siemens Ltd.’s energy business into Siemens Energy India, became effective on April 7—the same day as the record and ex-date. Shareholders of Siemens Ltd. will receive one share of Siemens Energy India for each share held. Siemens Ltd. had hit a 20% upper circuit on the ex-date.

The new entity is expected to list on the stock exchanges within 30 to 90 days from the record date.

Siemens Energy India focuses on delivering products, solutions and services across the energy value chain. Its portfolio includes grid technologies, industrial power generation, gas services and project execution in power generation, transmission and industrial applications.

The energy vertical contributed an average of 35% to Siemens Ltd.’s revenue and 40% to its earnings before interest and taxes between the financial year ending March 2021 and the financial year ending March 2024.

For the financial year 2023–24, Siemens Energy India reported revenue of Rs 6,280 crore and an Ebitda margin of 15.7%. It posted a net profit of Rs 710 crore. Its order book stood at Rs 10,050 crore at the end of the December 2024 quarter, with fresh orders worth Rs 8,800 crore during the fiscal.

Siemens stock rose as much as 1.08% during the day to Rs 2,842 apiece on the NSE. It was trading 0.23% higher at Rs 2,818 apiece, compared to a 0.53% decline in the benchmark Nifty 50 as of 9:30 a.m. 

It has risen 1.72% in the last 12 months and fallen 13.18% on a year-to-date basis. The relative strength index was at 59.85.

Fifteen out of 25 analysts tracking Siemens have a 'buy' rating on the stock, five recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 3,639.41, implying an upside of 2.5%.