India is on the brink of a multi-decade industrial and infrastructure upcycle. With strong policy backing for capex, energy transition, digitalisation, and manufacturing, companies enabling this transformation are set to benefit immensely.
Siemens Ltd, the Indian arm of the German engineering giant Siemens AG, is at the heart of this evolution – quietly modernising India’s factories, electrifying its transport, and digitising its industries. This is not just an industrial stock – it’s a proxy for India’s modernisation journey.
But does Siemens offer a compelling case for long-term investors? Let’s delve deeper.
Stock overview
| Ticker | SIEMENS |
| Industry/Sector | Capital Goods (Electric Equipment) |
| Market Cap (₹ Cr.) | 1,16,701 |
| Free Float (% of Market Cap) | 24.78% |
| 52 W High/Low | 8,129.90 / 2,450.00 |
| P/E | 45.12 (Vs Industry P/E of 66.09) |
| EPS (TTM) | 73.14 |
About Siemens
Siemens Ltd. is a leading player in India’s industrial technology space, offering automation, electrification, digitalisation, and smart mobility solutions. A part of the global Siemens AG group, the company brings in cutting-edge German technology and applies it to Indian needs.
With a legacy of over 150 years in India, Siemens has established deep relationships with both public and private sector clients, supported by strong R&D, localised manufacturing, and high technology integration.
Key business segments
Siemens operates primarily in the following key business segments:
- Smart Infrastructure – Low and medium-voltage products, energy distribution, and building technologies.
- Digital Industries – Factory automation, motion control, and industrial software.
- Mobility – Rail automation, electrification, signalling, and train systems.
- Energy (Transmission) – High-voltage switchgear, substations, and grid automation (non-generation).
- Others – Services, digital lifecycle solutions, and exports.
Primary growth factors for Siemens
Siemens key growth drivers:
- Capex Upswing: Rising investments in power, railways, and automation fuel demand.
- Make in India Push: Localisation and PLI schemes drive factory automation needs.
- Railway Boom: Electrification and Vande Bharat create traction for mobility solutions.
- Energy Transition: Smart grids and renewables boost demand for grid tech.
- Digital Shift: Industry 4.0 and digital twin adoption support software-led growth.
Detailed competition analysis for Siemens
Key financial metrics – FY25;
| Company | Revenue(₹ Cr.) | EBITDA Margin (%) | PAT Margin (%) | ROE(%) | ROCE(%) | P/E (TTM) |
| SIEMENS | 19510.80 | 12.80% | 11.22% | 19.11% | 26.29% | 44.45 |
| ABB India | 12267.51 | 18.93% | 15.40% | 28.80% | 38.86% | 67.30 |
| CG Power | 9908.66 | 13.17% | 9.82% | 36.44% | 48.88% | 109.48 |
| HAVELLS | 21778.06 | 9.78% | 6.75% | 18.07% | 25.46% | 66.77 |
Key insights on Siemens
- 5-year revenue CAGR of 11% underscores steady growth driven by strong execution and diversified business segments.
- Consistent EBITDA margins above 12% reflect operational efficiency, cost control, and a high-quality business mix.
- Robust bottom-line performance with a 5-year PAT CAGR of 19%, indicating sustained profitability and value creation.
- Debt-free balance sheet provides financial resilience and flexibility to pursue growth opportunities without leverage risks.
- RoCE has more than doubled over the past 5 years, signaling improved capital efficiency and superior returns on investments.
- Strong order backlog offers multi-quarter revenue visibility and supports long-term earnings stability in infrastructure, automation, and electrification projects.
Recent financial performance of Siemens for Mar-25
| Metric | Mar-24 | Dec-24 | Mar-25 | QoQ Growth (%) | YoY Growth (%) |
| Revenue (₹ Cr.) | 4152.40 | 3587.20 | 4259.00 | 18.73% | 2.57% |
| EBITDA (₹ Cr.) | 636.90 | 400.90 | 467.50 | 16.61% | -26.60% |
| EBITDA Margin (%) | 15.34% | 11.18% | 10.98% | -20 bps | -436 bps |
| PAT (₹ Cr.) | 649.20 | 372.10 | 407.90 | 9.62% | -37.17% |
| PAT Margin (%) | 15.63% | 10.37% | 9.58% | -79 bps | -605 bps |
| Adjusted EPS (₹) | 22.54 | 17.26 | 16.35 | -5.27% | -27.46% |
Siemens financial update (Mar-25)
Financial performance
- Quarterly revenue posted modest growth, supported by the Smart Infrastructure (SI) segment. However, this was partially offset by demand normalisation in Digital Industries (DI) and a slowdown in the Mobility segment.
- EBITDA was slightly impacted due to lower volumes in DI and cost headwinds, though SI and Mobility businesses maintained profitability in line with global benchmarks.
- Profit before tax declined ~38% YoY in Q2 FY25, mainly due to one-time extraordinary gains and demerger-related expenses in the base quarter. Excluding these, the decline was ~11% YoY, reflecting normalised operations in DI.
Business highlights
- New orders grew ~44% YoY, led by all major segments except the low voltage business, which saw a dip due to lower commodity prices and subdued demand.
- The company reported a book-to-bill ratio of 1.25x, with an order backlog of ₹41,500 crore, up ~7% YoY, ensuring multi-quarter revenue visibility without margin dilution.
- The 9,000-horsepower locomotive project remains on track. The prototype is undergoing homologation, with mass production scheduled in sync with customer timelines.
Outlook
- Growth is expected to be public capex-driven, especially in power utilities, railways, and metros – key areas for the SI and Mobility businesses.
- Siemens is seeing healthy momentum in emerging sectors such as semiconductors, electronics, batteries, and data centres.
- In commercial verticals, pharma, cement, and chemicals continue to perform well, while automotive, F&B, and metals show muted or deferred capex activity due to macroeconomic lags, especially in urban demand.
Company valuation insights – Siemens
Siemens is currently trading at a TTM P/E of 45.12, which remains below the industry average of 66.09, suggesting room for valuation re-rating as fundamentals improve. The company has delivered stable financial performance with strong operating cash flows, despite a dip in profitability from ongoing operations.
Growth prospects remain promising, particularly in the Smart Infrastructure segment, supported by the Indian government’s increased capital expenditure on electrification, urban infrastructure, and railway modernisation. Siemens’ entrenched position and diversified portfolio equip it well to capitalise on emerging demand across both public and private sectors.
While near-term profitability was impacted by moderation in the Digital Industries segment and one-off expenses, the company stands to benefit from its robust order backlog, healthy book-to-bill ratio, and traction in semiconductors, data centres, and rail mobility solutions.
Valuation-wise, applying a 45x multiple on CY27E EPS of ₹90, we derive a 12-month target price of ₹4,050, implying an upside of 22% from current levels. On a 3-month horizon, a target of ₹3,600 suggests a 9% upside, reflecting optimism around execution pick-up and government-led capex tailwinds.
Major risk factors affecting Siemens
- Execution Delays: Government-related orders may face delays, impacting revenue recognition.
- Import Dependency: Although localisation is increasing, some components still rely on global supply chains.
- Currency Fluctuations: Given its imported content and export contracts, forex volatility can impact margins.
Technical Analysis of Siemens Share
Siemens has formed a rounding bottom pattern and has recently given a breakout above the neckline with a 5% move in a day, confirming a bullish momentum.
The stock is now trading above its 50-day, 100-day, and 200-day EMAs, reinforcing the establishment of a sustained uptrend.
MACD stands highly positive at 127.68, with the MACD line above the signal line, signalling the presence of a bullish momentum. The RSI at 53.30 points to decent buying interest, while the Relative RSI (21-day) at 0.13 confirms the stock’s recent outperformance relative to its peers.
ADX at 29.35 indicates that the trend has strong strength, and the overall setup remains favourable. A breakout above ₹3500 could lead to further upside towards ₹4050, while ₹3020 remains a crucial support level to watch.
- RSI: 53.30 (Decent Buying Interest)
- ADX: 29.35 (Strong Trend)
- MACD: 127.68 (Positive)
- Resistance: ₹3500
- Support: ₹3020
Siemens stock recommendation
Current Stance: Buy with a target price of ₹3,600 over a 3-month horizon and ₹4,050 over a 12-month horizon. Siemens remains a high-conviction play on India’s infrastructure and industrial automation themes, backed by its strong order book, robust cash generation, and exposure to high-growth public capex sectors.
Why buy now?
Capex boost: Well-positioned to benefit from strong public capex in power, infrastructure, and mobility.
Order visibility: Robust order backlog of ₹41,500 Cr and 1.25x book-to-bill ratio ensure revenue stability.
Segmental resilience: SI and Mobility segments align with global profitability; DI moderation seen as temporary.
Financial strength: Debt-free balance sheet and strong cash flows support long-term value creation.
Portfolio fit
Siemens is an ideal large-cap industrial pick for portfolios aiming to tap into India’s infrastructure transformation and industrial automation growth story. Its diversified business model, capital efficiency, and margin stability make it suitable for investors seeking a mix of cyclical growth exposure and consistent execution in core engineering verticals.If you found this helpful and want regular stock trade calls, check out my community on StockGro here: https://app.stockgro.club/ui/social/tradeViews/groupFeed/07a7b961-b8ca-42ce-baf3-a9eec781b6ebSiemens: Budget 2025-26 opportunities
- Infra Capex Thrust – Higher government allocation to power, railways, and urban infrastructure to drive Smart Infrastructure and Mobility segments.
- Make in India Push – Incentivises domestic manufacturing, boosting demand across automation, electrification, and energy-efficient solutions.
- Energy Transition Focus – Budgetary support for renewables and grid modernisation aligns with Siemens’ offerings in sustainable energy systems.
- Digital Infrastructure Spend – Drives growth in Digital Industries through increased investments in semiconductors, data centres, and industrial digitisation.
- Urbanisation and Smart Cities – Enhances demand for building tech, electrification, and integrated mobility solutions.
Final thoughts
Think of the invisible forces running India’s factories, railways, power grids, and cities – automation, electrification, and digital control. Siemens is the silent engine behind all of them.
Whether it’s the thrust on green energy, the vision of 100% electrified railways, or the evolution of smart factories, Siemens Ltd is woven into the fabric of India’s transformation. It’s not chasing headlines, but building the rails (literally and figuratively) for India’s trillion-dollar ambitions.
For long-term investors, it’s a bet on India’s capex-led future, backed by technology, governance, and capital discipline.
