Siemens Share Price Target: HDFC Securities Comment Post Q2 FY 2025 Results

Siemens Share Price Target: Siemens India Limited, one of the top technology companies in India, has reported its earnings for the second quarter of the current financial year (Q2 FY25) with a 45.4 per cent uptick in net profit to Rs 830.7 crore on higher revenues, against Rs 571.3 crore recorded in the corresponding quarter last fiscal.

Responding to the strong earnings of the company, the domestic brokerage firm HDFC Securities has maintained its BUY rating on the stock citing its strong order booking, order execution capabilities, and increased investments in key projects.

Siemens Share Price Target

As the brokerage firm maintains the BUY rating on the SIL stock, it has given a target price of Rs 8,114 against the current market price of Rs 7,499.55 apiece. This marks an upside of nearly 8.2 per cent from the current market value of the stock.

As of 12:39 pm on Thursday, the shares of the company were trading 62.75 or 0.84 per cent higher at Rs 7,493 apiece.

Reasons To Raise Siemens Share Price Target

HDFC Securities has issued a BUY call on Siemens India Ltd (SIL) for the following reasons:  

Strong Quarterly Performance: SIL reported strong Q4 FY24 revenue, EBITDA, and APAT of Rs 59.74 billion, Rs 8.5 billion, and Rs 7.7 billion, respectively, exceeding expectations with strong margins of 14.2 per cent (+243 bps YoY).  

Healthy Order Inflows: SIL secured Rs 61.6 billion in new orders (+37 per cent YoY), reflecting strong demand in smart infrastructure, mobility, and energy segments, despite election-related slowdowns.  

Strong Backlog: SIL has a solid order backlog and continues to book significant projects, ensuring revenue visibility for the near to medium term.  

Demerger Benefits: The planned demerger of the energy segment into a separate entity by H2CY25 could unlock additional value and allow focused growth in core segments.  

Increased Investment: SIL's decision to increase capex at its Power Transformer factory in Kalwa to Rs 4.6 billion underscores its commitment to capacity expansion and long-term growth.  

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