Multibagger Siemens stock rises up to 5% post better Q2 show: Should you buy, hold or sell?
Siemens shares in trading on Wednesday (November 27) rose as much as 5 percent after better-than-expected Q2 financial performance. In the September quarter, the company’s PAT or profit fell 45.4 percent to Rs 830.7 crore against estimates of Rs 732 crore.
Revenue at the company rose 11.3 percent to Rs 6,461.1 crore, while Zee Business research estimated the same at Rs 6,400 crore.
Also, operating profit increased by 34 percent year-on-year to Rs 938.1 crore in the quarter under review, while the same was posted at Rs 920 crore.
Margin also increased to 14.5 percent compared to expectations of 14.4 percent.
The company alongside the Q2 results also announced a dividend of Rs 12 per share – equivalent to 600 percent for the financial year ending September 2024.
The dividend, as recommended by the Board of Directors, if announced at the next Annual General Meeting (AGM) of the Company, will be paid from Friday, February 14, 2025, noted the release of the company.
Also, the company’s board has approved an additional investment of about Rs. 100 crore for Power Transformers, in addition to an investment of about Rs. 360 crore approved on November 28, 2023.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd said, “By taking on private sector capex and the government’s continued focus on infrastructure capex, we believe we are well positioned to meet the growing market opportunities. They are currently focused on completing the announced divestment.” of the Energy business that will unlock value for our shareholders.”
Should you buy, hold or sell Siemens?
UBS while reiterating its ‘neutral’ stance on the stock raised its price target from Rs 7,770 to Rs 8,000-implying potential gains of over 10 percent from the last close.
As in brokerage electricity leads industries. Also, the company reported a sharp bottom line, led by other revenue, which grew 95 percent year-over-year.
The company sounded optimistic about government capex, infra spending and pickup in private capex. According to the brokerage, the heavy electronics company reported 11/34/45 percent yoy growth in top-line/EBITDA/PAT. Moreover while it missed the top line, it delivered a 1%/18% hit in EBITDA & PAT.
The company’s new orders of Rs 6,160 crore show a growth of 37 percent year-on-year.
