Shares of Siemens Ltd. gained as analysts saw positive growth prospects following fourth-quarter results amid healthy order pipeline.
"Recent results commentary by peers such as ABB India Ltd. and CG Power Ltd. reflects strong growth prospects, supported by robust new order growth," UBS Securities said.
Siemens' increasing investments in high-growth segments with expanding value chain coverage, low voltage, and mobility, coupled with a healthy order pipeline and much improved short-cycle demand trends and commentary during the global CEO's recent India visit, implies a rising focus on India's manufacturing landscape for the company globally, the brokerage said.
This, according to the brokerage, could help Siemens clearly improve order intake, driving better growth.
"An extensive product portfolio with strong capability across transmission and railways makes Siemens one of our top picks," according to Nuvama Institutional Equities.
Shares of the company rose 2.48% to close at Rs 3,891.05 apiece, as compared with a flat Nifty 50.
Of the 23 analysts tracking the stock, 10 maintained 'buy', five suggested 'hold', while three recommended 'sell', according to Cogencis data. Of the remaining five analysts, four remained neutral between 'buy' and 'hold', while one kept a neutral stance between 'hold' and 'sell'.
Here's what analysts said about the results:
Nomura
Maintains 'neutral' rating with a target price of Rs 3,008 apiece.
Sales and Ebitda beat estimates, while order inflows were in line.
Margins, however, lagged estimates.
Stronger order inflows are an upside risk, while margin misses are the key downside risk.
UBS Securities
Maintains 'buy' rating and raises the price target to Rs 4,500 apiece from Rs 3,900 apiece.
Recent expansion and rising services in large mobility orders will help scale services and exports' share above 40% by FY25–26.
This could improve the return structure, with healthy margins and revenue scalability.
Recent robust order intake by peers and encouraging commentary by the company underscore the house's outlook on the sector and company growth.
With increasing investments in high-growth segments, commentary during the global CEO's recent India visit implies a rising focus on India's manufacturing landscape for Siemens globally.
Says this could help Siemens improve order intake, driving better growth.
Says company will benefit from a significant growing revenue share from high-cash and return-accretive export and services businesses (45% by FY25–26) appears to be overlooked by consensus.
Nuvama Institutional Equities
Retains 'buy' rating and raises the target price to Rs 4,400 apiece from Rs 3,800 apiece.
Believes the company is best placed for railways and power transmission capital expenditure push.
The company is well-placed for private capex on the conventional side as well.
Siemens beat consensus Ebitda and profit after tax by 17% and 4%, respectively, on account of better execution across segments.
An extensive product portfolio with strong capability across transmission and railways makes it one of the house's top picks.
RECOMMENDED FOR YOU
Talbros Automotive Expects 15% Growth In FY26, 20% In FY27: CFO
Jun 12, 2025
NCC Targets 10% Revenue Growth, Orders Worth Rs 22,000–25,000 Crore In FY26
Jun 06, 2025
Sanghvi Movers Targets 25–30% Top-Line Growth In FY26 On Strong Order Book
May 24, 2025
Happiest Minds Technologies Confident Of Double-Digit Growth In FY26 On Strong Order Pipeline
May 13, 2025
POPULAR