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Siemens shares gain on reporting jump in Q4 profit, brokerages hike target prices

27 Nov , 2024   By : Debdeep Gupta


Siemens shares gain on reporting jump in Q4 profit, brokerages hike target prices

Engineering and automation major Siemens India Ltd shares gained three percent in the morning session on November 27 after the firm reported a 45.4 percent jump in net profit for the quarter ended September.


Siemens India's consolidated net profit for the quarter came in at Rs 830.7 crore in the July to September period, over Rs 571.3 crore in the same duration of the previous financial year.


The company follows the October to September fiscal year. For the full year, the net profit jumped 38.54 percent to Rs 2,718.1 crore, over Rs 1,961.9 crore in the year-ago period.


The firm’s revenue from operations rose 11.4 percent to Rs 6,373.6 crore in the reported quarter, compared to Rs 5,721 crore in the year-ago period, the statement said. Siemens said its new orders also increased by 37 percent to stand at Rs 6,164 crore in the July to September quarter.


At 9.15 am, shares of the firm were quoting Rs 7,449.8 on the NSE, higher by 2.89 percent compared to the previous session's close.


"Robust order booking was on the back of strong wins in the smart infrastructure, mobility, and energy segments whilst Digital industries continued to experience normalization in demand. The firm approved the demerger of its energy segment into a separate entity which is expected to be listed by H2CY25," said HDFC Securities.


The brokerage hikes its target price on the automation player to Rs 8,114 per share while reiterating its buy rating.


International brokerage UBS maintained its 'neutral' stance but hiked its target price on the firm to Rs 8,000 per share. The broking firm noted that the firm reported a sharp beat on the bottom line and the firm's management sounded optimistic on government capex, infra spends, and a pickup in private capex.


Over the past year, shares of the firm have surged almost 100, nearly doubling investors' capital. In comparison, the Nifty 50 has recorded a 12-month run of around around 22 percent.

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