Siemens Share Price Hits One-Month High As Brokerages Raise Target After Q4 Results
Antique Broking's report said, "We believe that the company will be among the biggest beneficiaries of the ongoing capex cycle, with potential annual orders reaching Rs 400 billion over 2–3 years.
Siemens India Ltd.'s September quarter results announced Tuesday led the brokerages to raise their target prices for the counter, driving the stock to hit its highest level in over a month.
The company follows an October–September cycle. Its net profit in the fourth quarter came in at Rs 831.2 crore, as compared to Rs 571.6 crore in the year-ago period, while revenue increased by 11.3% year-on-year for the quarter under review, reaching Rs 6,461.1 crore.
Nuvama raised its target price for Siemens to Rs 8,350 from Rs 8,000 earlier while retaining a 'buy'. The revised target implies 15.3% upside. The brokerage said the company is conservatively building in 15% annual growth in base orders; optionality of one high-voltage direct current system order of Rs 5,000 crore this fiscal; and around 14.5% operating margins by fiscal ending March 2027. However, it has trimmed earnings per share estimates for fiscal 2025 and 2026 by 7.4% and 7.6%, respectively, baking in delayed execution.
The board has approved a further investment of Rs 100 crore for power transformers in addition to the Rs 360 crore investment announced previously.
"The additional investment will enable the company to expand the range of its offerings to include large reactors," Motilal Oswal said. "The capacity will go online by December 2025." The brokerage has a 'buy' rating for the stock.
Antique Broking also increased its target price for Siemens to Rs 8,856 per share from Rs 8,738 earlier, while maintaining buy rating. The new target price implies upside of 22.2%.
"We believe that the company will be among the biggest beneficiaries of the ongoing capex cycle, with potential annual orders reaching Rs 40,000 crore over 2–3 years," the brokerage noted.
Meanwhile, UBS maintained its Neutral rating on the stock with a target price of Rs 8,000, implying an upside of 10.4%. Revenue for the September quarter missed UBS by 6%, while operating profit and profit after tax beat estimates by 1% and 18%, respectively.
Catch up in energy segment on both execution and margin are key positives for the company, the brokerage noted. Improving track on profitability with electrification leading industrials, UBS said, adding that execution in mobility with improving margins to reduce profitability concerns.
The scrip rose as much as 5.25% to Rs 7,622.95 apiece, the highest level since Oct. 21. It pared gains to trade 3.3% higher at Rs 7,477 apiece, as of 10:09 a.m. This compares to a flat NSE Nifty 50 Index.
It has risen 85.7% on a year-to-date basis and 104.26% in the last 12 months. Total traded volume so far in the day stood at 2.82 times its 30-day average. The relative strength index was at 62.85.
Out of the 26 analysts tracking the company, 15 maintain a 'buy' rating, five recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.6%.
