Capex revival, policy tailwinds to aid Siemens; Antique sees 20% upside

Antique maintains its 'Buy' rating on Siemens with a target price of ₹3,767 per share, an upside of nearly 20 per cent from Friday's close

Antique Stock Broking said early signs of private capex revival, aided by Goods and Services Tax (GST) cuts and a supportive tax regime, could boost Siemens Ltd.'s Smart Infrastructure and Digital Industries, following its recent analyst meet.

 

Analysts said that management highlighted that while government capital expenditure has remained healthy over the past five years, private capital expenditure has been sluggish. 

 

However, early signs of revival are now visible, supported by favourable macroeconomic policies such as GST rate cuts and a supportive income tax regime, which are driving higher consumption, the brokerage said. This is expected to benefit both the Smart Infrastructure and Digital Industries segments.

 

 

Siemens, with its robust product portfolio and superior technology offerings, is well placed to benefit from key government initiatives under the Viksit Bharat 2047 vision, Antique said. "Going ahead, the company will focus on expanding its distribution reach, enhancing localisation through capacity expansion, and maintaining a strong focus on cost control."  ALSO READ | HDFC Sec says 'Buy' again on JK Lakshmi Cement; 5 drivers behind the call 

Antique believes Siemens is well prepared to capitalise on the ongoing capital expenditure cycle. It remains positive on the company and maintains its 'Buy' rating on the stock with a target price of ₹3,767 per share, an upside of nearly 20 per cent from Friday's close. 

 

With approximately 65 per cent domestic manufacturing and a robust distribution network spanning channel partners, distributors, and original equipment manufacturers, the company plans to deepen penetration in key verticals, Antique said. 

 

Its strategy also includes enhanced localisation through capacity expansion and selective mergers and acquisitions to strengthen its technology and product portfolio. Management expects the Smart Infrastructure segment to deliver around a 10 per cent compound annual growth rate over FY25 to FY30.

 

Siemens India derives nearly half of its segment revenue from three key verticals -- industrial machinery, which contributes around 20-25 per cent, metals, led primarily by steel, at about 10-15 per cent, and automotive, at roughly 5-10 per cent -- according to Antique Stock Broking. The remaining revenue comes from pharma, food and beverages, and cement.  ALSO READ | Amber Enterprises is Nuvama's top bet among EMS; check reasons, target here 

The brokerage noted that Siemens' DI Xcelerator digital marketplace continues to see increasing traction, with more than 500 customers placing orders, highlighting growing adoption of the company's digitalisation and automation solutions.

 

Growth is expected to be driven by a strategic shift towards end-to-end solutions from standalone products, renewed partner engagement across the technology and information technology ecosystem, and increased monetisation of its large installed base through an expanded services offering, Antique said.