⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SIEMENS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | SIEMENS | Market Cap | 1,06,226 Cr. | Current Price | 2,982 ₹ | High / Low | 3,412 ₹ |
| Stock P/E | 66.1 | Book Value | 366 ₹ | Dividend Yield | 0.40 % | ROCE | 14.9 % |
| ROE | 11.4 % | Face Value | 2.00 ₹ | DMA 50 | 3,063 ₹ | DMA 200 | 3,163 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.31 % | PAT Qtr | 420 Cr. | PAT Prev Qtr | 369 Cr. |
| RSI | 47.0 | MACD | -27.0 | Volume | 2,91,933 | Avg Vol 1Wk | 3,08,934 |
| Low price | 2,450 ₹ | High price | 3,412 ₹ | PEG Ratio | 32.4 | Debt to equity | 0.01 |
| 52w Index | 55.3 % | Qtr Profit Var | -9.94 % | EPS | 56.9 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Quarterly PAT at 420 Cr vs 369 Cr previously, showing sequential growth but YoY decline (-9.94%).
- ROE at 11.4% and ROCE at 14.9% reflect moderate capital efficiency.
- Debt-to-equity ratio at 0.01 indicates a virtually debt-free balance sheet.
- EPS at 56.9 ₹ provides a strong earnings base, though profit growth remains inconsistent.
💹 Valuation Indicators
- P/E ratio: 66.1, significantly higher than industry average of 35.4, suggesting overvaluation.
- P/B ratio: ~8.1 (2,982 ₹ / 366 ₹ book value), showing premium pricing.
- PEG ratio: 32.4, very high, indicating poor growth-adjusted valuation.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Siemens India operates in industrial automation, electrification, and digitalization solutions.
- Competitive advantage lies in global brand strength, advanced technology, and diversified industrial presence.
- Exposure to infrastructure, energy, and automation demand provides long-term growth opportunities.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 2,800–2,950 ₹ range (near support levels and RSI at 47.0, neutral zone).
- Long-term holding viable for investors seeking exposure to industrial automation and infrastructure growth.
- Accumulation should be cautious due to stretched valuations and weak growth-adjusted metrics.
Positive
- Debt-free balance sheet (Debt-to-equity 0.01).
- Strong global brand and diversified industrial presence.
- DII holdings increased (+0.31%), showing domestic institutional support.
Limitation
- High P/E (66.1) compared to industry average (35.4).
- PEG ratio at 32.4 highlights poor growth-adjusted valuation.
- Dividend yield at 0.40% is modest.
Company Negative News
- FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA (3,063 ₹) and 200 DMA (3,163 ₹), reflecting bearish trend.
Company Positive News
- Sequential PAT growth (420 Cr vs 369 Cr).
- DII holdings increased, showing domestic support.
Industry
- Industry PE at 35.4, much lower than Siemens’ 66.1, highlighting sector undervaluation relative to Siemens.
- Industrial automation and infrastructure sector expected to grow steadily with digitalization and energy demand.
Conclusion
- Siemens India is financially stable with strong brand presence and debt-free operations.
- Valuations remain stretched, making accumulation near 2,800–2,950 ₹ more attractive.
- Best suited for long-term investors seeking industrial automation exposure, but caution advised due to premium valuations and modest return metrics.
I can also extend this into a peer comparison with ABB India and Schneider Electric to highlight how Siemens stacks up in valuation and profitability. Would you like me to draft that next?