Siemens stock drops rapidly as management flags growth challenges ahead

Siemens has plans of capex of Rs 1,100 crore to expand capacity to meet incremental domestic and export opportunities

Siemens’s share price has lost ground in the past few sessions following weak management commentary. The management indicated challenges to the growth outlook due to stagnant private capex and concerns over semiconductor shortages for digital industries.

 

Government infra-spending may regain momentum from January 2025. There could be pickups across energy transition, mobility, data centres, electronics, chemicals, pharma, food & beverages, as well as core areas like steel, auto, and cement. However, digital industries like factory automation, process automation, and motion control may face headwinds for the next six to nine months.

 

Siemens has capex plans of Rs 1,100