Siemens Q4 Results Review - HDFC Securities Maintains 'Buy' On The Stock, Raises Target Price; Here's Why

HDFC Securities Institutional Equities

Siemens India Ltd. delivered healthy standalone Q4 FY24 revenue/Ebitda/adjusted profit after tax of Rs 59.74/8.5/7.7 billion, beating our estimates by 0.1/2.7/11.5%. Ebitda margin was 14.2%(+243.3 bps/+139.3 bps YoY/QoQ) versus our estimate of 13.8%.

Siemens received new orders worth Rs 61.6 billion (+37/-1.3% YoY/QoQ), which is strong, considering the slowdown in bid/order process amid election season. Robust order booking was on the back of strong wins in the smart infrastructure, mobility and energy segments whilst Digital industries continued to experience normalisation in demand.

Siemens has earlier approved the demerger of its energy segment into a separate entity which is expected to be listed by H2 CY25. Siemens is increasing its capex for Power Transformer factory at Kalwa (announced in November 2023) by Rs 1 billion, resulting in the total capex of Rs 4.6 billion.

Given the strength in order inflows and robust order backlog, we maintain a Buy rating, with an increased target price of Rs Rs 8,114 (rolled over to 65 times Dec-26 EPS).

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