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SIEMENS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SIEMENS | Market Cap | 1,14,459 Cr. | Current Price | 3,214 ₹ | High / Low | 3,441 ₹ |
| Stock P/E | 74.8 | Book Value | 366 ₹ | Dividend Yield | 0.37 % | ROCE | 14.9 % |
| ROE | 11.4 % | Face Value | 2.00 ₹ | DMA 50 | 3,186 ₹ | DMA 200 | 3,181 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.31 % | PAT Qtr | 248 Cr. | PAT Prev Qtr | 415 Cr. |
| RSI | 50.3 | MACD | 12.7 | Volume | 2,09,452 | Avg Vol 1Wk | 3,88,563 |
| Low price | 2,450 ₹ | High price | 3,441 ₹ | PEG Ratio | 36.7 | Debt to equity | 0.01 |
| 52w Index | 77.1 % | Qtr Profit Var | -20.4 % | EPS | 47.0 ₹ | Industry PE | 33.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹415 Cr. to ₹248 Cr. (-20.4%).
- Margins: ROE at 11.4% and ROCE at 14.9% → moderate efficiency.
- Debt: Debt-to-equity ratio of 0.01 → virtually debt-free.
- Cash Flow: Stable, supported by strong operations but pressured by profit decline.
- Return Metrics: EPS at ₹47.0, consistent earnings power.
💹 Valuation Indicators
- P/E Ratio: 74.8 vs Industry PE of 33.0 → highly overvalued.
- P/B Ratio: Price ₹3,214 / Book Value ₹366 ≈ 8.78.
- PEG Ratio: 36.7 → expensive relative to growth.
- Intrinsic Value: Current valuation stretched, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in industrial automation, energy, and infrastructure solutions.
- Competitive advantage lies in global brand strength, diversified portfolio, and innovation.
- Debt-free balance sheet enhances resilience.
- Challenges include high valuation and cyclical demand pressures.
📈 Entry Zone Recommendation
- Technicals: RSI at 50.3 (neutral), MACD positive, price above 50DMA (3,186) and 200DMA (3,181).
- Entry Zone: Attractive accumulation near ₹3,100–3,200 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong fundamentals, but valuation risk persists.
✅ Positive
- Debt-to-equity ratio very low (0.01).
- Strong global brand and diversified operations.
- DII holdings increased (+0.31%).
⚠️ Limitation
- Quarterly PAT declined (-20.4%).
- High P/E (74.8) compared to industry average (33.0).
- High PEG ratio (36.7) indicates expensive valuation relative to growth.
- Dividend yield modest at 0.37%.
📉 Company Negative News
- PAT dropped from ₹415 Cr. to ₹248 Cr.
- FII holdings decreased (-0.15%).
- Stock corrected from ₹3,441 to ₹3,214.
📈 Company Positive News
- DII confidence increased (+0.31%).
- MACD positive, showing bullish technical momentum.
- Debt-free balance sheet supports long-term stability.
🌐 Industry
- Industrial automation and energy solutions industry benefits from infrastructure growth and digital transformation.
- Industry PE at 33.0 indicates sector trades at lower valuations compared to SIEMENS.
- Global demand for smart infrastructure supports long-term opportunities.
🔎 Conclusion
- SIEMENS shows strong fundamentals with debt-free balance sheet and global brand strength.
- Valuations are stretched, limiting near-term upside.
- Best considered for long-term investors with entry near ₹3,100–3,200; holding depends on earnings recovery and demand growth.