Shares of Siemens India traded greater on Tuesday after Japanese brokerage Nomura upgraded the inventory to ‘Impartial’ from ‘Cut back’ and raised its goal worth to Rs 3,325 (earlier Rs 2,780). The revision displays Nomura’s extra constructive view on the corporate’s earnings energy, bettering profitability and margin visibility throughout key segments.
The brand new goal worth implies a valuation of 48x December 2027F EPS, broadly according to Siemens India’s long-term common and at an 8 per cent low cost to the goal a number of assigned to ABB. The brokerage additionally raised its FY26–27 earnings estimates by 3 per cent, pushed by bettering efficiency within the Mobility (MO) enterprise and expectations of wholesome order conversion.
In its report dated November 17, Nomura analysts Umesh Raut and Aritra Banerjee famous: “We increase FY26–27F earnings by 3 per cent to issue improved MO profitability and forecast a PAT CAGR of 16 per cent over FY25–28F. We roll ahead our valuation to December 2027F EPS and improve our score to ‘Impartial’ with a revised SOTP-based TP of Rs 3,325.”
What led to the improve?
Nomura’s improve follows a powerful Q4FY25 efficiency, the place Siemens delivered a notable beat regardless of uneven demand traits.
Income rose 16 per cent year-on-year to Rs 5,170 crore, exceeding Nomura’s estimate by 14 per cent and the Road’s expectations by 9 per cent.
Progress was powered by a 29 per cent leap in Mobility and a 20 per cent rise in Good Infrastructure.
Digital Industries grew simply 1 per cent, impacted by muted personal capex.
Order inflows elevated 10 per cent Y-o-Y to Rs 4,800 crore, barely under projections. The order backlog remained robust at Rs 42,250 crore, up 6 per cent Y-o-Y, providing wholesome income visibility for FY26.
On profitability, Siemens delivered a margin shock. Adjusted Ebitda rose 17 per cent Y-o-Y to Rs 640 crore, coming in 19 per cent above Nomura’s estimate. Margins have been regular at 12.3 per cent, supported by a pointy enchancment in MO’s Ebit margin, which expanded 294 bps to 11.1 per cent. SI and DI margins softened considerably. Recurring PAT declined 4 per cent Y-o-Y to Rs 500 crore, however nonetheless exceeded the brokerage’s forecast barely.
Progress outlook stays robust
Administration expects progress to stay at twice India’s actual GDP, supported by main capex cycles in transportation and electrification.
Key catalysts embrace:
A Rs 21,000-crore Vande Metro tender (2,856 coaches).
The Rs 26,000-crore 9,000 HP locomotive challenge, anticipated to enter execution by early CY26.
Continued demand from knowledge centres, EV-charging infrastructure, and grid modernisation inside the SI division.
A projected revival in DI, aided by semiconductor-related engineering initiatives and bettering personal capex.
Nomura famous that exports from the MO division might also change into a significant medium-term driver.
Nevertheless, the brokerage flagged dangers akin to margin pressures in MO attributable to aggressive bidding and weaker pricing energy in SI. Upside triggers embrace giant order wins and a stronger-than-expected uptick in data-centre-led demand.
Inventory motion
Round 16:49 PM, Siemens India shares have been up 1.08 per cent, touching an intraday excessive of Rs 3,269.80 on the BSE, outperforming a weak broader market.
