Siemens Q2 Results Review: Strong Inflows Amid Weak Execution, Says Motilal Oswal Maintaining 'Neutral' Stance

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Motilal Oswal Report

Siemens Ltd.'s results were below our estimates for the combined company as well as the non-energy entity in Q2 FY25. For the combined entity, revenue was 6% below our estimate and PAT was 10% above our estimate. For the non-energy entity too, growth was impacted by weak execution and margin across segments, except Smart Infrastructure.

Digital Industries segment continued to see demand slowdown. Order inflows for the non-energy entity were healthy during the quarter and were up by 44% YoY, which provides good revenue visibility for future.

We cut our estimates to bake in weak performance seen during H1 FY25. Our target price of Rs 3,200 is based on 45x Mar’27E earnings on proforma financials of the non-energy entity Siemens Limited.

We will revisit our estimates once we have detailed financials of both the entities. We maintain Neutral rating on the stock.

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