Siemens India Ltd has seen its shares gain approximately 3% in early trading on November 27, 2024, following the announcement of a robust 45.4% year-on-year increase in consolidated net profit for the quarter ending September 2024. The company’s strong financial performance has prompted several brokerages to raise their target prices for the stock, reflecting growing investor confidence.
Impressive Financial Performance
For the quarter ending September 30, Siemens India reported a consolidated net profit of ₹830.7 crore, up from ₹571.3 crore during the same period last year. This significant increase in profitability underscores the company’s effective operational strategies and strong market demand.
- Quarterly Revenue: Siemens’ revenue from operations rose by 11.4%, reaching ₹6,373.6 crore, compared to ₹5,721 crore in the previous year.
- New Orders: The company also reported a substantial increase in new orders, which surged by 37% to ₹6,164 crore during the quarter.
- Full-Year Performance: For the full fiscal year, Siemens’ net profit increased by 38.54% to ₹2,718.1 crore, compared to ₹1,961.9 crore in the prior year.
Market Reaction and Broker Recommendations
At 9:15 AM IST, Siemens shares were trading at approximately ₹7,449.8 on the NSE, reflecting a rise of 2.89% compared to the previous session’s close.Brokerages have responded positively to Siemens’ quarterly results:
- HDFC Securities has raised its target price for Siemens shares to ₹8,114, maintaining a “buy” rating based on strong order bookings across multiple segments including smart infrastructure and mobility.
- UBS has increased its target price to ₹8,000, while maintaining a “neutral” stance, noting the company’s optimistic outlook regarding government capital expenditure and infrastructure spending.
Strategic Developments
Siemens continues to focus on expanding its operations and enhancing shareholder value:
- The company is progressing with its plan to demerge its energy segment into a separate entity, which is expected to be listed by the second half of calendar year 2025.
- Additionally, Siemens has approved a dividend of ₹12 per share, reflecting its commitment to returning value to shareholders.
Conclusion
Siemens India’s strong quarterly performance and positive market sentiment have resulted in increased share prices and favorable analyst ratings. As the company continues to capitalize on growth opportunities within various sectors, investors remain optimistic about its future prospects.
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