Stock Market Today: Siemens share price gained up to 5% during the intraday trades on Wednesday post September quarter results, that were declared post market hours on Tuesday. Should you Buy Sell or Hold that has risen more than 7% this week?
Q4 Results
Siemens during the Quarter ended September 2024 , which happens to be Q4 for the company following October – September financial year, reported 3% rise in net profit to ₹774 crore, which came better than expectations. Analysts at Prabhudas Lilladher said that Adj. net profit grew 36.4% YoY to Rs780 crore better than their estimates of ₹760 Crore driven by an improved operating performance.
Those at Nuvama Institutional Equities said net profit growth was led by strong execution across segments (+11% year on year) and multi-year high Operating margins of 14.5%.
Order flows , dividend and other highlights
Fresh orders for Q4FY24 grew 37% YoY to ₹6200 crore as per analysts taking order backlog to over ₹46,800 crore.
Dividend: Siemens recommended a dividend of Rs. 12/- per Equity Share of Rs. 2/- each (600%) for the Financial Year ended 30th September, 2024. The dividend, to be paid from Friday, 14th February, 2025.
Capex. Siemens approved further investment of around Rs. 100 crore for Power Transformers, in addition to the investment of around Rs. 360 crore approved on 28th November, 2023.
Analysts views and recomendations
Prabhudas Lilladher analysts said that they remain positive on Siemens from a long-term perspective given its strong and diversified presence across industries through focus on electrification, digitalization & automation. The other reasons for Prabhudas Lilladher having bulish stance includes product localization, strong balance sheet, healthy public & private capex and value-unlocking from demerger for Energy business. The price target for PL stands at ₹7716.
Antique Stock Broking continues to remain optimistic about the growth prospects of Siemens as it is among the most diversified electro-mechanical engineering companies in India, is a technology leader, and has top-of-the-line products. They believe that the company will be among the biggest beneficiaries of the ongoing capex cycle, with potential annual orders reaching ₹40,000 Crore over 2–3 years and hence we maintain Buy rating on the stock with a revised Target price of ₹8,856
Nuvama Institutional Equities said that Big ticket-size orders (~4–5 High voltage Direct Current or HVDCs, locomotives ,trainsets, etc.) are likely to materialize over the next 12–24 months. Nuvama finds higher visibility of two large HVDC orders over next six–eight months while the large railway (loco, trainset) orders seem to be taking longer, Target price of Nuvama stands at ₹8350.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
