Engineering Giant Siemens: Worth Accumulating Amidst Dividend Surge
Siemens Ltd’s large-cap engineering stock at an enticing target price of Rs 4359 per share, backed by a generous dividend of Rs 10 per equity share declared on November 28 for the fiscal year ending September 30, 2023. Despite a marginal 0.77% dip in Siemens shares over the past week, the year-to-date returns showcase a robust 41% gain.
Market watchers highlight Siemens’ market capitalization at Rs 1,42,102.67 crore and emphasize the stock’s resilience. Analyst Amit Anwani underlines Siemens’ positive outlook, spotlighting its diversified industry presence, product localization, robust balance sheet, and alignment with healthy public and private capex trends.
Valuation & Recommendation: Amit Anwani maintains an optimistic stance on Siemens, projecting a price-to-earnings ratio of 63.0x/54.5x SY24/25E. The ‘Accumulate’ rating endorses a target price of Rs 4359 (previously Rs 4241), valuing it at PE of 60x SY25E.
Performance Insights: Siemens shares reflect impressive performance metrics with a 52-week high at Rs 4244.55 and a low at Rs 2775.30. The upward trajectory includes a 10% gain in the last month, a 41% surge in the past year, and remarkable returns of 157% and 284% over two and five years, respectively.
Dividend Announcement & Financial Snapshot: Siemens’ regulatory filing on November 28 recommended a dividend of Rs 10 per equity share for FY 2022-23. The 4th quarter ending September 30, 2023, witnessed a substantial 49.8% YoY increase in net profit, reaching Rs 571.6 crore. Revenue from operations rose by 24.7% to Rs 5807.7 crore. Siemens follows an Oct-Sept financial year.
Siemens’ Historical Ties with India: Siemens, a longstanding partner to India since 1867, delivers integrated solutions for sustainable manufacturing, automation, infrastructure, mobility, and energy.
Disclaimer: This analysis draws insights from Prabhudas Lilladher’s brokerage report. Greynium Information Technologies, the Author, and the Brokerage House are not liable for investment decisions made based on this article. Users are advised to consult certified experts before making any investment decisions.
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