Macquarie has retained a ‘Neutral’ rating on Siemens while reducing its target price to ₹6,650, reflecting a cautious stance. The company flagged a slowdown in private capex, which constitutes 50-55% of its revenue, and limited visibility on large-value tenders in mobility and energy.
While new capex initiatives are on track, the brokerage has lowered its earnings estimates for FY25 and FY26. Siemens continues to benefit from its diversified portfolio, but near-term headwinds in private capex and muted large-value tenders are likely to weigh on performance.
Siemens’ management highlighted potential challenges ahead during a recent analyst call, pointing to a likely slowdown in railway order inflows and private capital expenditure (capex). The company also noted that a greater share of railway orders could shift toward Indian Railways’ factories.
While private capex remains robust in high-growth sectors like semiconductors and battery technology, the pace has been sluggish in traditional segments, adding to near-term headwinds. Additionally, Siemens flagged concerns about the pace of HVDC (high-voltage direct current) orders. The company’s focus on VSC (voltage source converter) technology globally may face hurdles in India, where the preference is for LCC (line-commutated converter) technology.
These factors have led to cautious sentiment among analysts, reflecting a mixed outlook for Siemens’ growth trajectory.
