UBS maintains a Neutral rating on Siemens with a target price of ₹8,000 following the company’s analyst meet. Key takeaways include weak government capex in 1H, with expectations of a pickup in 2H. Private capex remains mixed, with sectors like metals and auto showing flat growth, while commercial buildings, data centers, and pharmaceuticals exhibit robust demand.
Short-cycle digital industries are still affected by channel de-stocking, impacting order inflow. Siemens is focusing on high-value HVDC projects based on VSC technology. The proposed demerger and listing of the energy business, set for CY25, will align both entities with an identical holding structure. UBS highlights adverse short-cycle and rail order commentary as potential negatives for competitors like ABB and CG.
