Siemens - Riding Capex Through Tech-Driven Offerings; 'Buy' Says Motilal Oswal

Motilal Oswal Report

Valuation and view

Siemens Ltd.'s stock is currently trading at a price/earnings of 77.7 times/62.5x on FY25E/FY26E. We remain constructive on Siemens, as the company is a direct play on the transmission and HVDCrelated spending over the next few years.

It is also rightly positioned to capture the railway-related opportunities. Reiterate Buy with a target price of Rs 8,400.

Key risks and concerns

Delays in order finalization from key government-focused segments such as transmission and railways, b) aggression in bids to procure large-sized projects would adversely impact margins, and c) related-party transactions with parent group entities at lower-than-market valuations to weigh on the stock performance.

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