Siemens India Ltd: A Bright Future Ahead
Recently, we attended the analyst meet of Siemens India Ltd (SIEM IN), where the company's management shared its segmental performance and strategic plans. The key takeaway was that mobility remains a major growth driver, thanks to a surge in orders for rolling stock and signaling, as well as high-speed rail and metro projects.
Key Growth Drivers
- Smart Infrastructure (SI): This segment is benefiting from favorable market trends, increased localization (currently around 65%), and strategic partnerships.
- Digital Industries (DI): Although this segment has faced challenges, there are signs of improvement, with increased orders and expected medium-term growth.
The company's focus on localization, strategic partnerships, and solutions and services mix will help it capitalize on the next phase of growth in transmission and distribution (T&D), industrial, and private consumption-led capex cycle.
Investment Outlook
The stock is currently trading at 53.2x/46.2x on SY26/27E. We maintain our 'Accumulate' rating, with a target price of Rs3,470, valuing the stock at 51x Sep'27E. This suggests that Siemens India Ltd is well-placed for long-term growth, driven by its strong order backlog, increasing solutions and services mix, and strategic partnerships in key sectors like mobility, smart infrastructure, and digital industries.
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