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Siemens share price is trading at ₹7,446 (+0.22%), continuing to show remarkable resilience in the Indian equity market, backed by strong financial performance and strategic positioning. The company’s stock has shown consistent upward momentum over the past year, as indicated by its price chart, which highlights a steady increase in price supported by healthy volumes and moving averages.
The chart for Siemens Limited demonstrates a clear bullish trend throughout 2024. Key observations include:
The stock price steadily increased from the ₹6,000 levels in early 2024 to above ₹7,400, representing a significant rise of over 23% during the year.
The 50-day moving average (DMA) served as a dynamic support level, reflecting short-term bullish momentum.
The 200-DMA, an indicator of long-term trends, continues to trend upward, further validating the stock's sustained growth trajectory.
Rising volumes, especially during price surges, indicate strong investor interest and institutional participation. Notable spikes in trading volume around June and November align with key announcements and earnings results.
For the July-September quarter (Q4 FY2024), Siemens reported stellar performance:
Revenue from Operations: ₹6,461 crore, an 11.2% increase from ₹5,807.7 crore in the corresponding period last year.
Net Profit: ₹830.7 crore, up by an impressive 45.4%, compared to ₹571.3 crore in Q4 FY2023.
Order Book Growth: New orders rose by 37% to ₹6,164 crore, driven by strong demand across all business segments, particularly digital industries.
Siemens' board recommended a ₹12 per equity share dividend (600% payout) for FY2024. This reflects the company's commitment to rewarding shareholders, with dividends set to be distributed starting February 14, 2025.
Siemens operates in the Capital Goods - Electrical Equipment Industry, competing with players like ABB, CG Power, and BHEL. A peer comparison highlights Siemens' strong position:
Siemens maintains a robust ROCE of 24.94%, but peers like CG Power outperform with a 46.63% ROCE.
The company’s P/E ratio of 99.59 reflects a premium valuation compared to competitors.
The company has consistently posted strong earnings, with a CAGR of 20.4% over the last five years. The latest quarterly profit jump of 45.4% further supports the bullish sentiment.
New orders grew 37% year-on-year, with sustained demand in automation, infrastructure, and digital industries. Excluding large orders like the 9,000 HP electric locomotive order from Indian Railways, order growth stood at 14% in FY2024.
The capital goods sector has witnessed increased investments, driven by government infrastructure projects and corporate capital expenditure, benefiting Siemens significantly.
Siemens' stock continues to find support at the 50-DMA, indicating strong short-term momentum.
Recent price action suggests a potential breakout above ₹7,500, with resistance near ₹7,600 levels.
The steady upward slope of the 200-DMA confirms a robust long-term trend.
Any corrections are likely to find support around ₹7,200, offering buying opportunities for investors.
Rising Demand for Automation: Siemens’ expertise in industrial automation positions it well to capitalize on global trends.
Renewable Energy Focus: The company’s offerings in energy-efficient technologies align with sustainability initiatives, enhancing growth prospects.
Government Infrastructure Push: Increased spending on electrification and digital infrastructure supports Siemens’ revenue streams.
With a P/E ratio of 99.59, Siemens trades at a premium compared to its peers, which could limit upside potential.
Uncertainties in global trade and inflationary pressures may impact demand across key sectors.
Siemens remains a compelling choice for long-term investors seeking exposure to a market leader in the automation and engineering sectors. However, its high valuation necessitates cautious entry points, ideally during market corrections. The company’s consistent performance, growing order book, and dividend payouts underscore its robust fundamentals. For those aligned with a long-term growth strategy, Siemens continues to shine as a strong portfolio addition.
