Nuvama Institutional Equities has retained its hold rating on Siemens Ltd., assigning a target price of ₹3,170—just about 1% higher than its current market price of ₹3,135. The cautious stance comes amid muted Q2FY25 execution and only marginal revenue growth.
In Q2FY25, Siemens’ revenue increased by just 2.6% YoY to ₹42.6 billion, impacted by demand normalisation in the Digital Industries (DI) segment and the long-gestation nature of Mobility (MO) orders.
However, the company reported a 44% YoY jump in order inflows (OI) to ₹53.1 billion, supported by propulsion and bogie orders for metro projects across Asia, and railway signalling projects in India. This has pushed Siemens’ total order backlog to ~₹415 billion—equivalent to 1x FY24 sales, excluding the ₹255 billion 9000HP locomotive order.
Nuvama believes that large-ticket MO orders and a revival in DI operating margins (OPM) could be the key growth drivers over the next two to three years, although current execution remains a concern.
Current market price (CMP): ₹3,135.00
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