This large cap MNC stock has zoomed 101% since November

Siemens stock update: In past three months, since Q1 results, Siemens has appreciated by 54 per cent after the company reported healthy earnings.

Shares of Siemens hit a new high of Rs 6,515.65, as they rallied 6 per cent on the BSE in Monday’s intra-day trade in an otherwise weak market ahead of March quarter (Q2) earnings on Tuesday. In comparison, the S&P BSE Sensex was down 0.4 per cent at 72,375 at 12:17 PM. Since November, the stock price of Siemens has more-than-doubled or zoomed 101 per cent.

The board of directors of the company are scheduled to meet on Tuesday, May 14, 2024, to consider the un-audited financial results for the second quarter/half-year ended March 31, 2024.

In past three months, since Q1 results, Siemens has appreciated by 54 per cent after the company reported healthy consolidated revenue growth of 20.2 per cent year-on-year (YoY), while Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined by 257 bps YoY to 12.4 per cent due to lower gross margin and higher other expenses.

Siemens is expected to report healthy results, after its peers ABB India posted a stellar set of numbers on Friday after market hours.

Demand outlook in India is robust due to rising capex across verticals, led by huge government spending on infrastructure development (railways, roads & highways, etc.) along with private capex entering an upcycle as capacity utilization approaches >80 per cent, according to analysts.

The General Elections in 2024 may cause a momentary pause in tendering for large projects but will not disrupt the long-term growth trajectory, which is intact due to our nation’s political stability and consistency in policy measures. The GDP growth rate is also expected to pick up momentum, moving from the current 6.4 percent to above 7 percent in the next 3-4 years, Siemens said in its 2023 annual report.

Siemens is best placed to support India in its growth story. Whether in Energy, Infrastructure, Manufacturing or Mobility, Siemens is well positioned to provide technologies and solutions that can address India’s requirements. The investment is toward capacity expansions of Power Transformers used in the Power Transmission business and of Vacuum Interrupters for Medium Voltage Switchgear used in the Power Distribution sector. The expansion in capacities of both these products will enable the company to meet the growing demand both in India and globally, the company said.

Meanwhile, according to analysts at Prabhudas Lilladher, fresh investments are expected across Pharma, Data Centers, Auto, Electronics, Metals, Intralogistics, Chemicals, Water and Cement. Furthermore, growing power requirements in the country is driving demand in T&D and transformers. Opportunities are also arising out of newer verticals such as semiconductors, batteries, and electric vehicles (EVs). Moreover, rising focus on manufacturing productivity and energy & cost efficiencies is driving demand for digitalization, automation and cyber security solutions, the brokerage firm had said in December quarter results.