Siemens India's robust order intake of Rs 200.4 billion until 12 MFY25 has led to a record order backlog of Rs 422.5 billion (+20.5% YoY; 2.73x FY25 revenue), providing multi-year revenue visibility. Digital industries order growth is driven by chemical, pharma, and metals; while that of smnart infrastructure is driven by power utilities, semiconductors, battery and EVs; and mobility is led by signalling, propulsion, and telecommunication systems.
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HDFC Securities Institutional Equities
Given a robust order book, export opportunities, and a strong product portfolio, HDFC Securities maintains 'Buy' on Siemens India Ltd. with a target price of Rs 3,690/share (55x Sep-27E EPS) implying an upside of 17% from current market price of Rs 3,145.
The brokerage believes Siemens bid pipeline remains strong and new awards are expected to pick up pace in the next few quarters.
Capex pick-up key for further re-rating:
Policy measures have laid the foundation for a conducive capex recovery. Measures like PLI, personal income tax rate cuts, and GST rate cuts have had a positive impact on consumption recovery.
With elevated capacity utilization of 75-80%, the sentiment needs to improve toward decisive capacity expansion.
The brokerage believes the conclusion of US-India trade deal will be one of the key drivers of sentiment improvement and capex recovery.
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