Siemens shares jump 5% post results; check analyst views, target price & more

Siemens Ltd continued to attract positive response from analysts after the company reported an impressive set of numbers in the fourth quarter. Brokerage firms, tracking the counter, see a strong upside in the capital goods counter, which rallied more than 5 per cent in Wednesday's trading session.

Commenting on the robust performance of the company, analysts said that the recent quarter was a strong one in terms of operational performance with large order inflows for the company. However, the major portion of profit outperformance came in because of higher other income.

Siemens reported a 45.4 per cent YoY rise in the net profit at Rs 830.7 crore in the four quarters, while the revenue of the company rose 11.3 per cent YoY to Rs 6,461.1 crore. The capital goods player's Ebitda for the quarter rose 34 per cent YoY to 938.1 crore, while margins expanded to 245 basis points to 14.5 per cent for the reported quarter.
 

Siemens reported healthy Q4 results, ending September 30, in-line with Street estimates, led by strong execution across segments and multi-year high OPMs of 14.5 per cent. Fresh orders for Q4FY24 grew 37 per cent YoY to Rs 6,200 crore taking backlog to Rs 46,800 crore, said Nuvama Institutional Equities.

"We are conservatively building in 15 per cent CAGR in base orders; optionality of one HVDC order of Rs 5,000 crore in FY25E; and 14.5 per cent OPMs by FY27E. We are trimming FY25E/26E EPS by baking in delayed execution and roll-forward to FY27E at 70 times to a target price of Rs 8,350," it said.

Siemens delivered healthy standalone Q4FY24 revenue, Ebitda and PAT above out estimates, said HDFC Securities. "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," it said.

It has earlier approved the demerger of its energy segment into a separate entity which is expected to be listed by H2CY25. SIL is increasing its capex for Power Transformer factory at Kalwa (announced in November 2023) by Rs 100 crore, resulting in the total capex of Rs 460 crore Given the strength in order inflows and robust order backlog, we maintain a 'buy' rating, with an increased target price of Rs 8,114.

Shares of Siemens Ltd surged more than 5 per cent to Rs 7,614 during the trading session on Wednesday, with total market capitalization of the company hitting Rs 2.7 lakh crore mark. The stock had settled at Rs 7,245.90 in the previous trading session on Tuesday.

Global brokerage firm Siemens said that the company's balance sheet improved as electrification leads industries. However, the sharp beat in the bottomline was lead by other income, which rose 95 per cent YoY. "Results commentary sound optimistic on government capex, infra spend and pickup in private capex," it added with a 'neutral' rating with a target price of Rs 8,000.

Siemens reported largely in-line revenue led by energy/smart infra/mobility/digital industries, which reported 12 per cent/8 per cent/24 per cent/11 per cent YoY growth, Motilal Finance Services with a 'buy' rating. "The company continued to gain market share from a healthy demand across all its businesses with increasing interest in Siemens Xcelerator," it said.