Siemens Energy, Shree Cement, ABB India, Sundaram Finance, MCX, Ather Energy, JK Lakshmi & More Q1 Review

HDFC Securities recommends 'Buy' call for Siemens Energy, MCX, Ather Energy, JK Lakshmi,Medplus, Neogen; 'Add' call for Shree Cement, ABB India; 'Reduce' Sundaram Finance, LIC Housing Finance. Here's Why

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HDFC Securities Institutional Equities

Siemens Energy - Muted financial performance; strong order booking

Siemens Energy Ltd. delivered a muted quarter with revenue/Ebitda/adjusted profit after tax of Rs 17.8/3.4/2.6 billion, miss on our estimates by -12.1/- 21.4/-19.4%. Revenue and Ebitda were impacted by weaker execution which we believe will pick up from FY26 as T&D order book is strong and once there is significant execution, operating leverage will kick in on better margin mix. Siemens Energy received new orders worth Rs 32.9 billion (+94% YoY) on the back of strong demand both in domestic as well as export market, which led to an order intake of INR 107.6bn, as of 9M FY25.

Siemens Energy continues to benefit from sustained traction in the power transmission segment, backed by rising demand for grid infrastructure. Moreover, Siemens Energy announced an Rs 2.8 billion phased capex plan to augment high-voltage switchgear manufacturing at its Aurangabad facility.

Given the strong cash flow, robust order book, limited competitive intensity, and export opportunities, we maintain Buy on Siemens Energy with a revised target price of Rs 3,569/share (60x Sep-27E EPS).

Neogen Chemicals - Projects on track

Our Buy recommendation on Neogen Chemicals (Ltd. with a target price of Rs 2,630/share is premised on-

1. entry into the new-age electrolyte manufacturing business;

2. increasing contribution of the high-margin CSM business to revenue; and

3. volume-driven growth in legacy business.

Neogen Chemical’s Ebitda/APAT will grow at a CAGR of 34/43% over FY25-30E while RoE will improve from 5.9% in FY25 to 21.7% in FY30E.

Q1 Ebitda/APAT was 4/14% below our estimates, owing to lower-than-expected revenue and higher-thanexpected finance cost.

JK Lakshmi Cement - Strong volume and margin performance

We maintain Buy on JK Lakshmi Cement Ltd., with an unchanged target price of Rs 1,010/share (10x FY27E consolidated Ebitda).

We expect JK Lakshmi Cement to continue to deliver healthy volume growth (8% CAGR over FY25-27E) along with margins of Rs 939/1,020 per MT.

Despite major expansions underway, healthy cash flows should keep leverage in check. In Q1 FY26, JK Lakshmi Cement delivered strong 10% YoY volume growth along with Rs 936/MT margin gains. Thus, consolidated revenue/Ebitda/APAT rose 11/40/82% YoY.

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