SIEMENS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | SIEMENS | Market Cap | 1,35,598 Cr. | Current Price | 3,812 ₹ | High / Low | 3,930 ₹ |
| Stock P/E | 88.6 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 14.9 % |
| ROE | 11.4 % | Face Value | 2.00 ₹ | DMA 50 | 3,527 ₹ | DMA 200 | 3,302 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.24 % | PAT Qtr | 248 Cr. | PAT Prev Qtr | 415 Cr. |
| RSI | 60.1 | MACD | 46.1 | Volume | 5,80,426 | Avg Vol 1Wk | 4,03,159 |
| Low price | 2,826 ₹ | High price | 3,930 ₹ | PEG Ratio | 43.4 | Debt to equity | 0.01 |
| 52w Index | 89.3 % | Qtr Profit Var | -20.4 % | EPS | 47.0 ₹ | Industry PE | 35.3 |
📊 Financials: SIEMENS has a market cap of ₹1,35,598 Cr. Quarterly PAT declined from ₹415 Cr. to ₹248 Cr. (-20.4% variation), showing pressure on profitability. ROE at 11.4% and ROCE at 14.9% reflect moderate efficiency. Debt-to-equity ratio of 0.01 indicates an almost debt-free balance sheet, supporting financial stability. EPS at ₹47.0 is decent, though margins remain under strain.
💹 Valuation: Current P/E of 88.6 is far above the industry average of 35.3, suggesting significant overvaluation. P/B ratio (~10.4) is elevated compared to book value ₹366. PEG ratio at 43.4 indicates growth is priced expensively. Intrinsic value appears lower than CMP ₹3,812, limiting near-term upside.
🏦 Business Model: SIEMENS operates in industrial automation, electrification, and digital solutions. Its competitive advantage lies in global scale, technological innovation, and diversified industrial exposure. Strong brand and R&D capabilities provide resilience, though cyclical demand in industrial sectors can impact margins.
📉 Entry Zone: RSI at 60.1 suggests mildly overbought conditions, while MACD at 46.1 indicates bullish momentum. A potential entry zone could be around ₹3,600–₹3,700 for accumulation. Long-term investors may hold, given strong fundamentals and global positioning, but valuation risks remain elevated.
Positive
- 📈 Strong brand and global presence in industrial automation.
- 💰 Debt-free balance sheet (Debt-to-equity 0.01).
- ⚡ Diversified industrial and digital solutions portfolio.
Limitation
- ⚠️ High P/E (88.6) vs industry average (35.3).
- 📉 PEG ratio at 43.4, indicating expensive growth.
- 🔄 Moderate ROE (11.4%) and ROCE (14.9%).
Company Negative News
- 📉 Decline in FII holding (-0.05%).
- ⚠️ Sequential profit decline (-20.4%).
Company Positive News
- 📊 Increase in DII holding (+0.24%).
- 📈 Stock trading above DMA 50 (3,527) and DMA 200 (3,302).
Industry
- 💹 Industry PE at 35.3, much lower than SIEMENS’s 88.6.
- ⚡ Industrial automation and electrification demand expanding globally.
- 🏦 Strong OEM partnerships driving sector growth.
Conclusion
⚖️ SIEMENS is a fundamentally strong industrial automation player with global scale and technological leadership. However, valuations are stretched, limiting near-term upside. Entry may be considered around ₹3,600–₹3,700 for long-term investors, with confidence in its innovation-driven business model but caution regarding high multiples and cyclical risks.
For deeper insights, you could explore SIEMENS peer comparison or a technical chart analysis to complement this fundamental view.