SIEMENS - Investment Analysis

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

Investment Rating: 4.5

📊 Long-Term Investment Analysis

Siemens Ltd (SIEMENS) is a high-quality industrial and infrastructure play with strong fundamentals and long-term growth potential. Despite short-term valuation concerns, it remains a solid candidate for patient investors.

✅ Strengths

ROCE & ROE: ROCE at 23.6% and ROE at 17.6% are excellent, indicating strong capital efficiency.

PEG Ratio: 1.81 suggests reasonable valuation relative to growth.

Debt-Free: Debt-to-equity of 0.01 is virtually nil, providing financial flexibility.

EPS Growth: EPS of ₹73.2 with consistent quarterly profit growth.

Sector Leadership: Siemens is a dominant player in automation, energy, and smart infrastructure.

⚠️ Concerns

Valuation: P/E of 58.2 is slightly above industry average (57.2), indicating premium pricing.

Dividend Yield: Low at 0.39%, not ideal for income-focused investors.

Technical Weakness: RSI at 39.5 and MACD negative suggest short-term bearish sentiment.

FII/DII Outflows: Minor reductions in institutional holdings may reflect caution.

💰 Ideal Entry Price Zone

Based on valuation models and technical support

Intrinsic Value Estimate: ₹2,850–₹2,950

Current Price: ₹3,068

DMA 50/200: ₹3,163 / ₹3,281

Suggested Entry Zone: ₹2,850–₹2,950 This range offers a better margin of safety and aligns with support levels and valuation comfort.

🧭 Exit Strategy & Holding Period

📈 Holding Strategy

Time Horizon: 5–10 years to benefit from India's industrial expansion and energy transition.

Growth Targets

2025: ₹3,893–₹7,250

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2026: ₹7,060–₹11,560

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2030: ₹19,080–₹21,500

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🚪 Exit Strategy

Partial Exit: If price exceeds ₹7,000–₹8,000 by 2026, consider booking partial profits.

Trailing Stop: Use a stop-loss below ₹2,800 to manage downside risk.

Re-evaluate: If ROE drops below 15% or PEG rises above 2.5, reassess holding.

Would you like a comparison with peers like ABB India or Honeywell Automation to see how Siemens stacks up in the industrial automation space?

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