Buy Siemens, target price Rs 8,114: HDFC Securities
HDFC Securities maintains a buy call on Siemens with a raised target price of Rs 8,114. Siemens reported strong Q4FY24 results, exceeding estimates, driven by robust order bookings across various segments. The company's demerger of its energy seg...
By ETMarkets.com |
Reuters
HDFC Securities has a buy call on Siemens with a target price of Rs 8114. The current market price of Siemens is Rs 7449.15. Siemens, incorporated in 1957, is a Large Cap company with a market cap of Rs 263703.67 crore, operating in the Engineering sector.
Siemens' products/revenue segments include Engineering Goods, Income from Project Development, Sale of services, Other Operating Revenue, Export Incentives, Rental Income and Commission for the year ending 30-Sep-2023.
Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 6744.40 crore, up 25.82% from last quarter Total Income of Rs 5360.30 crore and up 13.29% from last year same quarter's Total Income of Rs 5953.20 crore. The company has reported net profit after tax of Rs 831.20 crore in the latest quarter.
Investment Rationale
Siemens India Ltd (SIL) delivered healthy standalone Q4FY24 revenue/EBITDA/APAT of Rs 59.74/8.5/7.7 billion, beating our estimates by 0.1/2.7/11.5%. EBITDA margin was 14.2%(+243.3bps/+139.3bps YoY/QoQ) vs.our estimate of 13.8%. SIL received new orders worth Rs 61.6 billion (+37/-1.3% YoY/QoQ), which is strong, considering the slowdown in bid/order process amid election season. 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. SIL 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 1 billion, resulting in the total capex of Rs 4.6 billion. Given the strength in order inflows and robust order backlog, HDFC Securities maintains a BUY rating, with an increased target price of Rs 8,114 (rolled over to 65x Dec-26 EPS).
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 30-Sep-2024, while FIIs owned 8.69 per cent, DIIs 6.83 per cent.
Siemens' products/revenue segments include Engineering Goods, Income from Project Development, Sale of services, Other Operating Revenue, Export Incentives, Rental Income and Commission for the year ending 30-Sep-2023.
Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 6744.40 crore, up 25.82% from last quarter Total Income of Rs 5360.30 crore and up 13.29% from last year same quarter's Total Income of Rs 5953.20 crore. The company has reported net profit after tax of Rs 831.20 crore in the latest quarter.
Investment Rationale
Siemens India Ltd (SIL) delivered healthy standalone Q4FY24 revenue/EBITDA/APAT of Rs 59.74/8.5/7.7 billion, beating our estimates by 0.1/2.7/11.5%. EBITDA margin was 14.2%(+243.3bps/+139.3bps YoY/QoQ) vs.our estimate of 13.8%. SIL received new orders worth Rs 61.6 billion (+37/-1.3% YoY/QoQ), which is strong, considering the slowdown in bid/order process amid election season. 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. SIL 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 1 billion, resulting in the total capex of Rs 4.6 billion. Given the strength in order inflows and robust order backlog, HDFC Securities maintains a BUY rating, with an increased target price of Rs 8,114 (rolled over to 65x Dec-26 EPS).
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 30-Sep-2024, while FIIs owned 8.69 per cent, DIIs 6.83 per cent.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Siemens Ltd sells Low Voltage and Geared motors business to Innomotics India for Rs 2,200 crADVERTISEMENT
