Siemens Ltd
Siemens Ltd
Industrials F&OSiemens Limited offers products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.[1]
Siemens Ltd is a high-quality industrial franchise with debt-free operations and strong long-term growth, but at a PE of 48.7x and P/B of 9.69x, the stock prices in significant future growth while TTM profit has declined 5%. The 41.67% analyst hold consensus reflects this valuation-growth tension.
Key Fundamentals
LargecapElectrical EquipmentCapital GoodsTechnical Indicators
Key Insights
Strengths
2- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 19.1%
Weaknesses
3- Stock is trading at 9.16 times its book value
- Earnings include an other income of Rs.1,149 Cr.
- Working capital days have increased from 41.9 days to 67.6 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoSiemens Ltd is a high-quality industrial franchise with debt-free operations and strong long-term growth, but at a PE of 48.7x and P/B of 9.69x, the stock prices in significant future growth while TTM profit has declined 5%. The 41.67% analyst hold consensus reflects this valuation-growth tension.
- Company is virtually debt-free, providing financial flexibility and resilience through economic cycles
- 5-year compounded sales growth of 20% demonstrates strong secular demand tailwinds in India's industrialization and infrastructure buildout
- 5-year compounded profit growth of 25% outpaces revenue growth, indicating operating leverage and margin expansion
- Stock CAGR of 27% over 5 years reflects sustained re-rating driven by India's capex cycle and Siemens' market positioning
- 3-year ROE of 17% is healthy for a capital goods company and shows consistent improvement from the 10-year average of 13%
- TTM revenue growth of 12% remains in double digits despite a high base, supported by strong order inflows in energy and mobility segments
- Market cap of Rs.1,34,503 Cr positions Siemens as a large-cap industrial with institutional ownership and liquidity advantages
- 37.5% of analysts rate the stock a Buy, indicating a meaningful cohort sees further upside from India's infrastructure spending
- PE ratio of 48.7x is extremely stretched for an industrial company, leaving little margin of safety if growth slows
- TTM compounded profit growth has turned negative at -5%, signaling near-term earnings pressure despite elevated valuations
- P/B ratio of 9.69x means investors are paying nearly 10 times book value, pricing in decades of compounding
- Working capital days have deteriorated from 41.9 to 67.6 days, a 61% increase that pressures cash conversion efficiency
- Earnings quality is questionable with other income of Rs.1,149 Cr contributing meaningfully to reported profits
- Dividend yield of just 0.32% offers negligible income support while waiting for capital appreciation
- 20.83% of analysts rate the stock a Sell, representing 5 out of 24 analysts — a notable bearish minority for a blue-chip name
- 10-year sales CAGR of only 9% shows that the recent 20% growth is cyclically elevated and may not sustain at current multiples
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- Q4 profit drops 36% YoY May 26
Net profit declined 36.4% YoY to ₹370 crore vs ₹582 crore, with EBITDA margin narrowing to 9.6% from 11% in the year-ago quarter.
- EBITDA misses estimates by 16-23% May 27
Q4FY26 EBITDA missed JM Financial and consensus estimates by 23% and 16% respectively, with gross margin compressing to 26.2% from 30.2% in Q4FY25.
- Digital Industries margin collapse May 27
Digital Industries segment margin came in at just 2.3% vs estimate of 8%, while Smart Infrastructure margin was 11.1% vs estimated 15%.
- Currency and commodity headwinds May 27
Rupee depreciation and higher commodity costs pressured margins across segments, contributing to the significant profitability miss in Q4FY26.
- Order inflows surge 33% YoY May 27
Order inflows rose 33% YoY to ₹67.31 billion in Q4, with order backlog reaching ₹450.33 billion, reflecting strong demand across public and private sectors.
- Revenue grows 14.6% YoY May 27
Revenue from operations rose 14.6% YoY to ₹4,618 crore, exceeding analyst estimates and driving a 5.46% share price surge to ₹3,878 intraday.
- JM Financial maintains add rating May 27
JM Financial retained an 'add' rating with a target price of ₹3,595, citing robust order backlog and strong domestic demand positioning.
- Rail subsidiary merger approved May 26
Board approved amalgamation of Siemens Rail Automation to streamline operations and strengthen positioning in mobility and rail infrastructure.
- ₹22B low voltage motors sale Jun 1
Siemens completed the sale of its Low Voltage Motors and Geared Motors business to Innomotics India for INR 22 billion on June 1, 2026.
- ₹18/share dividend proposed May 26
Board approved a dividend payout of ₹18 per equity share, subject to shareholder approval at the upcoming 68th AGM.
- AGM extended to August 2026 May 26
Received a three-month extension from the Registrar of Companies to hold its 68th AGM beyond the original May 11, 2026 deadline.
- Analyst meet held May 28 May 25
Siemens held an analyst and institutional investor meet on May 28, 2026, with audio recordings subsequently made available on the company website.
TL;DR: Siemens India is executing well on the top line with 14.6% revenue growth and exceptional 33% order inflow growth, building a robust ₹450B backlog that provides strong future visibility. However, profitability is under significant pressure from commodity inflation and currency depreciation, with gross margins compressing 400bps and EBITDA missing estimates materially. The company is actively restructuring through the rail subsidiary merger and non-core asset sales. The trend shows a growing revenue base but deteriorating margins, making margin recovery the key monitorable in coming quarters.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,858 | 4,873 | 5,808 | 3,710 | 4,152 | 3,763 | 4,457 | 3,360 | 4,029 | 4,347 | 4,900 | 3,831 | 4,618 |
| Expenses | 4,237 | 4,307 | 5,108 | 3,256 | 3,516 | 3,277 | 3,912 | 2,974 | 3,584 | 3,825 | 4,291 | 3,409 | 4,174 |
| Operating Profit | 621 | 567 | 700 | 453 | 637 | 485 | 545 | 387 | 445 | 521 | 609 | 422 | 444 |
| OPM % | 13% | 12% | 12% | 12% | 15% | 13% | 12% | 12% | 11% | 12% | 12% | 11% | 10% |
| Other Income | 117 | 132 | 146 | 256 | 479 | 298 | 544 | 423 | 341 | 124 | 126 | 19 | 116 |
| Interest | 10 | 4 | 5 | 3 | 21 | 5 | 18 | 3 | 2 | 5 | 4 | 6 | 14 |
| Depreciation | 78 | 88 | 79 | 60 | 63 | 70 | 62 | 66 | 66 | 71 | 69 | 71 | 74 |
| PBT | 649 | 607 | 762 | 646 | 1,032 | 709 | 1,009 | 740 | 718 | 570 | 662 | 364 | 472 |
| Tax % | 27% | 25% | 25% | 22% | 22% | 18% | 18% | 17% | 19% | 26% | 27% | 24% | 21% |
| Net Profit | 472 | 456 | 572 | 506 | 803 | 578 | 831 | 615 | 582 | 423 | 485 | 278 | 370 |
| EPS in Rs | 13.24 | 12.79 | 16.04 | 14.19 | 22.54 | 16.22 | 23.33 | 17.25 | 16.34 | 11.88 | 13.62 | 7.79 | 10.39 |
Profit & Loss
| Sep 2014 | Sep 2015 | Sep 2016 | Sep 2017 | Sep 2018 | Sep 2019 | Sep 2020 | Sep 2021 | Sep 2022 | Sep 2023 | Sep 2024 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 10,678 | 10,563 | 10,837 | 11,065 | 12,795 | 13,084 | 9,946 | 13,198 | 16,138 | 19,554 | 22,240 | 24,846 |
| Expenses | 10,559 | 9,565 | 9,815 | 10,008 | 11,468 | 11,594 | 8,944 | 11,746 | 14,278 | 17,067 | 19,136 | 22,021 |
| Operating Profit | 119 | 998 | 1,021 | 1,056 | 1,327 | 1,490 | 1,003 | 1,452 | 1,860 | 2,487 | 3,104 | 2,824 |
| OPM % | 1% | 9% | 9% | 10% | 10% | 11% | 10% | 11% | 12% | 13% | 14% | 11% |
| Other Income | 985 | 943 | 3,156 | 818 | 280 | 398 | 315 | 321 | 487 | 496 | 925 | 1,149 |
| Interest | 31 | 30 | 11 | 8 | 8 | 12 | 30 | 24 | 36 | 23 | 60 | 34 |
| Depreciation | 229 | 224 | 228 | 198 | 198 | 199 | 252 | 297 | 317 | 321 | 330 | 415 |
| PBT | 844 | 1,688 | 3,938 | 1,669 | 1,402 | 1,678 | 1,036 | 1,452 | 1,993 | 2,640 | 3,639 | 3,525 |
| Tax % | 28% | 30% | 26% | 32% | 36% | 34% | 26% | 25% | 23% | 26% | 25% | 22% |
| Net Profit | 603 | 1,174 | 2,914 | 1,137 | 901 | 1,099 | 769 | 1,089 | 1,543 | 1,962 | 2,718 | 2,754 |
| EPS in Rs | 16.94 | 32.98 | 81.82 | 31.92 | 25.31 | 30.87 | 21.58 | 30.57 | 43.33 | 55.07 | 76.29 | 77.27 |
| Div. Payout % | 35% | 30% | 41% | 22% | 28% | 23% | 32% | 26% | 23% | 18% | 16% | 23% |
Balance Sheet
| Sep 2014 | Sep 2015 | Sep 2016 | Sep 2017 | Sep 2018 | Sep 2019 | Sep 2020 | Sep 2021 | Sep 2022 | Sep 2023 | Sep 2024 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 71 | 71 | 71 | 71 | 71 | 71 | 71 | 71 | 71 | 71 | 71 | 71 |
| Reserves | 4,304 | 5,046 | 6,732 | 7,619 | 8,228 | 8,978 | 9,421 | 10,276 | 11,539 | 13,016 | 15,286 | 13,769 |
| Borrowings | 0 | 25 | 25 | 0 | 0 | 0 | 0 | 4 | 182 | 175 | 279 | 310 |
| Other Liabilities | 5,915 | 5,433 | 5,157 | 5,448 | 6,037 | 6,309 | 6,368 | 7,664 | 8,317 | 8,384 | 9,663 | 7,150 |
| Total Liabilities | 10,290 | 10,576 | 11,986 | 13,138 | 14,336 | 15,358 | 15,860 | 18,015 | 20,109 | 21,646 | 25,299 | 21,301 |
| Fixed Assets | 1,356 | 1,394 | 1,227 | 1,365 | 1,381 | 1,219 | 1,196 | 3,264 | 3,107 | 3,038 | 3,112 | 2,786 |
| CWIP | 41 | 32 | 79 | 143 | 62 | 58 | 88 | 35 | 52 | 50 | 103 | 249 |
| Investments | 8 | 114 | 110 | 0 | 0 | 0 | 0 | 3 | 1 | 1 | 1 | 1 |
| Other Assets | 8,886 | 9,037 | 10,570 | 11,630 | 12,893 | 14,081 | 14,576 | 14,713 | 16,949 | 18,556 | 22,082 | 18,264 |
| Total Assets | 10,290 | 10,576 | 11,986 | 13,138 | 14,336 | 15,358 | 15,860 | 18,015 | 20,109 | 21,646 | 25,299 | 21,301 |
Cash Flow
| Sep 2014 | Sep 2015 | Sep 2016 | Sep 2017 | Sep 2018 | Sep 2019 | Sep 2020 | Sep 2021 | Sep 2022 | Sep 2023 | Sep 2024 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 608 | 574 | 513 | 573 | 100 | 1,273 | 720 | 1,422 | 978 | 1,400 | 1,670 | — |
| Investing | 130 | 646 | 237 | 1,321 | -174 | -1,135 | 871 | -2,389 | -34 | -759 | -502 | — |
| Financing | -220 | -245 | -1,614 | -285 | -305 | -312 | -386 | -502 | -392 | -450 | -523 | — |
| Net Cash Flow | 517 | 975 | -864 | 1,610 | -379 | -174 | 1,205 | -1,469 | 552 | 191 | 644 | — |
| Free Cash Flow | 838 | 318 | 513 | 902 | -79 | 1,259 | 710 | 1,315 | 847 | 1,334 | 1,567 | — |
| CFO/OP | 675 | 81 | 85 | 131 | 52 | 127 | 102 | 124 | 81 | 89 | 81 | — |
Ratios
| Sep 2014 | Sep 2015 | Sep 2016 | Sep 2017 | Sep 2018 | Sep 2019 | Sep 2020 | Sep 2021 | Sep 2022 | Sep 2023 | Sep 2024 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 126 | 105 | 102 | 113 | 105 | 106 | 115 | 102 | 86 | 71 | 72 | 57 |
| Inventory Days | 78 | 69 | 69 | 70 | 74 | 73 | 101 | 104 | 99 | 95 | 93 | 60 |
| Days Payable | 202 | 173 | 150 | 182 | 196 | 215 | 251 | 214 | 186 | 152 | 166 | 94 |
| Cash Conversion Cycle | 3 | 1 | 21 | 1 | -17 | -36 | -36 | -8 | 0 | 14 | -1 | 23 |
| Working Capital Days | 24 | 19 | 31 | 34 | 49 | 44 | 42 | 31 | 16 | 31 | 28 | 68 |
| ROCE % | — | 19% | 16% | 15% | 18% | 19% | 11% | 14% | 16% | 21% | 24% | 21% |
Documents
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Company Information
Siemens Limited offers products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.[1]