Siemens Stock Continues To Rise, Up Over 11% Since Demerger

The shares of Siemens Ltd. rose on Monday after the stock saw a decline in the last session. In April so far, the stock has risen nearly 9%, while it has declined over 13% this year.

Following its demerger scheme, Siemens allotted 35.6 crore equity shares in a 1:1 ratio on April 15. The move carved out the company’s energy division into a separate listed entity, Siemens Energy India Ltd., effectively halving the stock price of Siemens.

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. Siemens rose over 26% after it hit its upper circuit on the ex-date. However, the stock has given up some of its gains and is up over 11.29% since April 7.

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.

Siemens stock rose as much as 1.24% during the day to Rs 2,868.50 apiece on the NSE. It was trading 0.74% higher at Rs 2,854.50 apiece, compared to a 0.90% advance in the benchmark Nifty 50 as of 10:23 a.m.

The stock was down nearly 5% in the last session.

It has fallen 0.60% in the last 12 months and 13% on a year-to-date basis.

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 3,535.41, implying an upside of 23.3%.