Siemens Stock Set to Soar: Here's Why You Should Invest

Positive Outlook for Siemens

Siemens, a leading player in the industrial automation and smart infrastructure sectors, is expected to see significant growth in its earnings over the next two years. This growth will likely be driven by the increasing demand for electrification and sustainable energy solutions.

Key Drivers of Growth

The company's Smart Infrastructure (SI) and Mobility (MO) segments are expected to contribute around 70% and 10% to its earnings, respectively. Additionally, the Digital Industries (DI) segment is likely to see growth, despite a weak base, due to a strong order book and improving margins.

Reasons to Invest

• Strong Order Book: Siemens has a robust order book in its SI and MO segments, which will drive revenue growth.
• Improving Margins: The company's margins are expected to improve, led by the mobility segment, which will contribute to increased profitability.
• Exit from Low-Margin Business: Siemens' decision to exit the low-voltage motors business, which was a low-margin segment, will also contribute to improved profitability.

Based on these factors, we have upgraded the stock to BUY, with a target price of INR 3,700. This presents a significant opportunity for investors to benefit from the company's expected growth in the industrial automation and smart infrastructure sectors.

Please note that this is not investment advice, and you should consult with certified experts before making any investment decisions.