Siemens stock surges over 7% after announcing Q4 results, demerger of energy business

Shares of Siemens Ltd hit a new high at ₹7,240 on the NSE on May 15, a day after the company announced its Q4 financial results and demerger its energy business into a separate entity that will be listed.

Shares of Siemens Ltd hit a new high at ₹7,240 on the NSE on May 15, a day after the company announced its Q4 financial results and demerger its energy business into a separate entity that will be listed.

The stock traded higher by 7.38 per cent on the NSE at ₹7,151.80 as of 11.33 am.

Also read: Siemens spins off energy business, shareholders to get one share for every share heldIn the March quarter, the company reported a 74 per cent rise in net profit at ₹896 crore.

Brokerages callBrokerages, including Incred, Nuvama, and Jefferies, have maintained their positive stance on the stock and have increased the target price.

Jefferies, which increased the target price to ₹8,000 given the ‘buy’ call has said that Q2 FY24 EBITDA was 11 per cent higher given better revenues and margins. 

Incred noted that the company’s strong Q2 FY24 EBITDA has beat its estimates and has given the ‘add’ rating at a target price of ₹7,565. 

Nuvama has maintained ‘buy’ rating at a target price of ₹7,700.

Domestic brokerage Motilal Oswal has reiterated ‘buy’ call with a revised target price of ₹7,800 from ₹6,050 based on 65x Sep’26E EPS. “We raise our estimates for FY24/FY25/FY26 by 17%/18%/26% primarily to factor in higher margin,” it said.

Motilal Oswal emphasised in its report that the company continues to benefit from a strong demand environment, especially in transmission, data centre, EV, railways, semiconductors, electronics, and hydrogen. It has planned a capex of ₹5 billion for GIS and metros to capitalize on domestic and export demand.

Analysts added that the stock is currently trading at a P/E of 69.3x/55.5x on FY25E/FY26E. “We remain positive on SIEM, as the company is a direct play on the transmission and HVDC-related spending over the next few years. It is also rightly positioned to capture railway-related opportunities,” it added.

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