Nuvama Research has downgraded Siemens from a ‘Buy’ to a ‘Hold’ rating, revising its target price to ₹7,000 from the earlier ₹8,350. The brokerage cited weak commentary on HVDC and railway orders as the primary reasons for the rating cut.
Siemens’ plans to focus exclusively on VSC technology for HVDC systems globally could face delays in India, where the preference for LCC technology persists. Additionally, railways orders remain sluggish, with a potential higher allocation towards Indian Railways’ factories.
Margins also remain under pressure, with Siemens’ FY24 EBITDA margin estimated at 13.2%, lagging behind peers that maintain 15–20%.
As of the latest update, Siemens shares were trading at ₹6,885.00.
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