SIEMENS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹73.2 — strong earnings for a ₹3,068 stock.

ROE: 17.6% & ROCE: 23.6% — excellent return metrics, indicating highly efficient capital use.

PAT Qtr: ₹408 Cr vs ₹372 Cr — sequential growth, but YoY decline of 37.2%, likely due to cyclical or project-based revenue fluctuations.

Debt & Leverage

Debt-to-Equity: 0.01 — virtually debt-free, a major strength.

Dividend Yield: 0.39% — modest, but consistent with a capital-light, growth-oriented model.

Book Value: ₹346 — trading at ~8.9x book, justified by high ROCE and brand premium.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 58.2 Slightly above industry PE of 57.2 — fairly valued

P/B Ratio ~8.87 High, but acceptable for a high-quality industrial tech firm

PEG Ratio 1.81 Reasonable, though not cheap — reflects moderate growth expectations

Intrinsic Value ~₹2,800–₹3,100 Current price is near fair value, offering limited upside

🏢 Business Model & Competitive Edge

Siemens India operates in

Automation, electrification, smart infrastructure

Mobility, energy, and industrial software

Competitive advantages include

Global brand and technology leadership

Strong order book and digital transformation tailwinds

Diversified industrial exposure across sectors

Business is project-driven, with lumpiness in quarterly earnings but strong long-term visibility.

📉 Technical & Sentiment Indicators

RSI: 39.5 — approaching oversold territory.

MACD: -39.4 — bearish momentum, but flattening.

Volume slightly below average — consolidation phase.

DMA 50 & 200 above current price — short-term weakness.

FII/DII holding slightly down — mild institutional caution.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹2,800–₹2,950

Near intrinsic value and technical support.

Attractive for long-term accumulation.

📈 Long-Term Holding View

Strong Buy & Hold

Excellent capital efficiency and global tech exposure.

Low debt, high ROCE, and resilient business model.

Ideal for long-term investors seeking quality industrial exposure.

Would you like a breakdown of Siemens India’s segment-wise revenue or a comparison with ABB, Honeywell Automation, or L&T to assess strategic positioning?

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